Australia's securities regulator has escalated its crackdown on the digital asset and futures trading platform Yepbit, removing several websites linked to the company after multiple investors reported being unable to withdraw funds. The Australian Securities and Investments Commission (ASIC) said on Wednesday that Yepbit had been operating without a valid Australian Financial Services Licence (AFSL) and was not registered with AUSTRAC as a virtual asset service provider.
ASIC said it received complaints from investors who could not retrieve money held through Yepbit. Some customers were allegedly told by the platform that their funds had been frozen while Yepbit completed regulatory checks or audits. ASIC rejected that explanation, saying it had not frozen investor funds and had taken no action preventing Yepbit from returning money to customers. "ASIC has taken action to protect consumers through its website takedown capability, by removing several websites purportedly operated by Yepbit," the regulator said. "We have also issued warnings on our Investor Alert List."
The watchdog has issued four alerts involving Yepbit-related websites. Its first warning was added on March 9, while two additional Yepbit Exchange domains were added to the alert list last week. ASIC noted that a company registration or Australian Company Number by itself does not mean a business holds an AFSL, and urged consumers to verify licensing through ASIC's professional registers and the Investor Alert List.
ASIC emphasized that when it does take formal action to freeze funds, it announces the measure through a media release. The regulator warned that entities can use false claims involving regulators to deflect withdrawal and refund requests while continuing to seek money from investors. Such tactics fit patterns ASIC has identified in other fraudulent investment operations targeting Australian consumers, including fake trading platforms promoted through messaging apps and pig butchering schemes.
The action adds to regulatory pressure on Yepbit outside Australia. The Philippines Securities and Exchange Commission issued a cease-and-desist order in February against Yepbit Exchange Pty. Limited and Fidelity Capital Investment Group, alleging unauthorized investment solicitation. Ghana's Securities and Exchange Commission followed in July with a warning covering Yepbit Exchange and Bonchat, describing them as suspected fraudulent investment schemes not licensed to provide regulated investment services.
ASIC's website disruption capability has been used repeatedly against suspected investment scams. Earlier enforcement actions included a Federal Court order winding up 95 companies connected to alleged pig butchering schemes, with liquidators receiving nearly 1,500 claims from 14 countries and reported losses exceeding $35.8 million. ASIC has previously said it was taking down roughly 130 scam websites each week and had removed more than 10,000 malicious sites, including more than 7,200 fake investment platforms.
Australia has separately tightened its anti-money laundering framework for virtual asset businesses. AUSTRAC said updated AML and counter-terrorism financing laws took effect on March 31, with additional obligations for newly regulated virtual asset services applying from July 1. Providers were required to apply for enrolment and registration by July 29, while businesses already registered as digital currency exchange providers were automatically moved into the VASP framework. ASIC advised investors to independently verify whether a business claiming to provide regulated financial services holds the required licence, rather than relying on certificates, company registration details or claims made by the platform itself.
