The Australian Securities and Investments Commission (ASIC) announced on April 8, 2025, that it had obtained court orders to shut down 95 companies involved in "pig butchering" crypto scams that defrauded investors of AU$439 million. The targeted companies were part of a sophisticated "Hydra" network whose operators posed as wealthy investors on fake investment platforms to lure victims into large cryptocurrency investments. ASIC's investigation revealed that the vast majority of the affected businesses—92 companies in total—were registered at the same Sydney address and listed a single individual, Chinese national Wei Tianxiang, as director for all of them.
The Australian regulator identified that the criminal network primarily used Tinder and WhatsApp platforms to deceive victims, first building trust relationships and then presenting fictitious investment opportunities. Sarah Court, ASIC Deputy Chair, highlighted that the scammers employed sophisticated techniques: after unsuspecting investors placed small initial amounts on the platforms and seemingly realized profits, they were encouraged to make larger investments, which the scammers then misappropriated. ASIC's analysis showed that scams increased by 25% in 2024 compared to the previous year, and this action represents the regulator's largest-ever crackdown on criminal networks operating in the cryptocurrency sector.
The activities of these now-shuttered companies highlight the growing trend of cryptocurrency investment fraud, as data from the Australian Competition and Consumer Commission (ACCC) indicates that such scams accounted for 25% of total losses in the country in 2024, amounting to AU$670 million. According to ASIC's statement, the authority continues its investigation and is considering further legal actions against Wei Tianxiang and potential accomplices, while also collaborating with international law enforcement agencies, including Hong Kong and Chinese authorities, to combat cross-border fraud.
Sources:
1.
Coinfomania News Room
2.
Alexander Stefanov
3.
The Australian Securities and Investments Commission (ASIC) has successfully obtained court orders to wind up 95 companies involved in online investment and romance baiting scams, cautioning that such fraudulent activities continue to pose significant risks to consumers.
4.
The Australian Securities and Investments Commission (ASIC) has obtained court orders to shut down 95 companies involved in crypto investment and romance scams, highlighting the ongoing threat of fraudulent activities in the crypto sector.
5.
The Australian Securities and Investments Commission (ASIC) has obtained court approval to shut down 95 companies involved in crypto investment and romance scams, known as "pig butchering," highlighting the ongoing threat of fraudulent activities in the crypto sector.
