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Ruholamin Haqshanas
Author
Ruholamin Haqshanas
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Australian authorities have intensified efforts to combat crypto scammers impersonating Binance, the world’s largest cryptocurrency exchange by trading volume.
The Australian Federal Police (AFP), National Anti-Scam Centre (NASC), and Binance Australia have issued warnings to victims about the sophisticated fraud scheme, which leverages fake messages to deceive users into transferring their crypto holdings.
In a joint statement released Wednesday, the AFP revealed that over 130 potential victims had been notified as part of a proactive crackdown on the scam.
Fraudsters reportedly used SMS and encrypted messaging platforms to pose as Binance representatives, falsely claiming that victims’ accounts had been compromised.
How the Scam Operated
Victims received convincing messages appearing to be from legitimate Binance support threads, including fake verification codes and a contact phone number directing them to an imposter hotline.
Once victims called the fraudulent number, they were advised to transfer their cryptocurrency to a so-called “trust wallet”, which was secretly controlled by the scammers.
The scam was uncovered through Operation Firestorm, a global law enforcement initiative launched last year to disrupt transnational cybercriminal networks targeting Australians with digital fraud.
While the AFP collaborated with international authorities to trace the perpetrators, funds transferred by victims were rapidly laundered through multiple wallets, making recovery nearly impossible.
“The AFP has worked closely with our partners at the NASC to ensure any victims in Australia targeted by these scammers were identified swiftly and given advice to help protect their cryptocurrency accounts,” said AFP Commander Cybercrime Operations Graeme Marshall.
Authorities have urged victims to immediately contact their banks or crypto exchanges and report incidents to the police via ReportCyber, using reference number AFP-068.
While assisting authorities in tackling fraud, Binance Australia is facing its own 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 denying them key consumer protections.
Growing Concerns Over Crypto Scams in Australia
The crackdown follows rising concerns about crypto-related fraud in Australia.
Last month, the Australian Competition and Consumer Commission (ACCC) raised alarms about the potential consequences of relaxed crypto regulations in the U.S. under President Donald Trump’s administration.
ACCC Chair Gina Cass-Gottlieb warned that loosening regulations in the U.S. could create “horror scenarios” for investors worldwide.
The agency’s annual scam report further highlighted the growing threat, revealing that Australians lost over $1.3 billion to investment scams in 2023, with crypto scams playing a major role.
Recently, Australia’s Securities and Investment Commission (ASIC) unveiled a proposal to impose stringent licensing requirements on crypto firms.
Under current Australian laws, businesses offering financial services or dealing in financial products must secure an Australian Financial Services License (AFSL). Additionally, platforms facilitating the trading of these products may require an Australian Market License.
The new rules would extend these requirements to crypto exchanges and many other digital asset firms.
