The Australian Securities and Investments Commission filed Federal Court action in Sydney on Tuesday against the operator of a cryptocurrency trading platform, alleging it ran TikTok and Instagram ads that displayed fake Australian financial services licence numbers.
ASIC said the platform, which marketed itself to retail investors under several trading names, claimed it was “ASIC registered” while routing client funds through offshore payment processors. The regulator is seeking injunctions, penalties and refunds for investors who deposited after seeing the ads.
What the regulator alleges
According to the statement of claim, paid social posts featured actors claiming guaranteed weekly returns and overlaid graphics mimicking ASIC’s public register. Investigators said the licence numbers cited in the ads belonged to unrelated, cancelled or never-issued entries once cross-checked.
ASIC chair Joe Longo said short-form video had become a primary acquisition channel for unlicensed operators because disclaimers could be hidden in auto-scrolling captions. The commission preserved more than 40 ads using forensic captures before platforms removed some posts for policy violations.
Investor losses
ASIC said it identified at least 380 Australian investors who transferred funds after viewing the campaigns, with self-reported losses exceeding $6.1 million. That figure may grow as the matter is publicised and more victims contact the regulator’s reporting line.
Scamwatch data show crypto investment scams remain the costliest category for Australian households in 2026, even as banks tighten outbound payment holds.
Platform response
The defendant operator has not yet filed a defence; ASIC declined to name individuals until court rules on a suppression application. TikTok and Meta said they were cooperating with subpoenas for ad-buyer metadata but noted that many ads were run through third-party marketing agencies registered overseas.
Consumer advocates urged Parliament to pass pending digital duty-of-care obligations that would force platforms to retain ad creatives for faster takedowns — a debate that intensified after last week’s parliamentary hearings.
What investors should verify
ASIC reiterated that legitimate licensees appear on its public Professional Registers search, and that licence numbers alone are insufficient without matching entity names. Investors should refuse pressure to move money through crypto ATMs or personal bank transfers to individuals.
The case is listed for a first directions hearing next month. A win for ASIC would add another precedent to its growing docket of social-media enforcement actions, but refunds depend on whether assets remain traceable offshore.
Regulatory pipeline
The case joins a queue of ASIC digital enforcement matters awaiting court dates after a hiring freeze on litigation specialists eased in mid-2026. Legal scholars said outcomes could clarify how Australian law treats offshore exchanges that target local phones with geo-fenced ads.
Investor advocates urged super funds to block contributions to self-managed schemes promoted via social video, a step few platforms have taken voluntarily.