Australian authorities uncover Binance scam targeting over 130 crypto investors

March 20, 2025 02:09 AM PDT | By Invezz

Australian authorities uncover Binance scam targeting over 130 crypto investors — Image source: Invezz

Fake Binance messages deceive users

Fraudsters behind the scam use SMS and encrypted messaging platforms to impersonate Binance representatives, falsely claiming that victims’ accounts have been compromised.

These messages contain fake verification codes and a fraudulent contact number that connects victims to a hotline controlled by the scammers.

Once in contact, victims are instructed to transfer their cryptocurrency holdings to a supposed “trust wallet” for security reasons.

However, this wallet is under the direct control of the fraudsters, making fund recovery nearly impossible.

The scam was uncovered through Operation Firestorm, a global law enforcement initiative targeting cybercriminal networks exploiting digital finance platforms.

Binance Australia faces legal scrutiny

While Binance Australia has been assisting authorities in tackling fraud, the exchange itself faces legal challenges.

In December 2024, the Australian Securities and Investments Commission (ASIC) launched legal action against Binance Australia Derivatives, accusing the platform of misclassifying retail investors and failing to provide them with necessary consumer protections.

The crackdown on the scam comes at a time when Australian regulators are tightening oversight on cryptocurrency firms.

Recently, ASIC proposed new licensing requirements that would extend financial service regulations to crypto exchanges.

Under current laws, businesses offering financial services must obtain an Australian Financial Services License (AFSL), and platforms facilitating trading may also need an Australian Market License.

If implemented, these changes could significantly impact how crypto firms operate in the country.

Challenges in recovering stolen funds

Authorities have warned victims to immediately report any fraudulent activity to their banks or crypto exchanges and to file complaints through ReportCyber using reference number AFP-068.

Despite law enforcement efforts, tracking and recovering stolen funds remains a challenge due to the complex laundering tactics employed by scammers.

Funds transferred by victims are often quickly moved through multiple wallets, making it difficult for authorities to trace transactions.

The AFP, working alongside international partners, continues to investigate the perpetrators behind the scam.

The Australian Competition and Consumer Commission (ACCC) has also raised concerns about the broader implications of crypto fraud, warning that relaxed regulatory policies in the US could create significant risks for global investors.

ACCC Chair Gina Cass-Gottlieb recently highlighted how weakened oversight in major crypto markets could increase vulnerabilities for investors worldwide, amplifying the need for stricter protections in Australia.

The post Australian authorities uncover Binance scam targeting over 130 crypto investors appeared first on Invezz

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