Australia Cracks Down on Yepbit as Withdrawal Complaints Mount

TLDR

• ASIC removes Yepbit websites after customers report blocked fund withdrawals.

• Yepbit lacks an AFSL and remains absent from AUSTRAC’s public VASP register.

• ASIC rejects Yepbit claims that the regulator froze customer account funds.

• Australia expands website takedowns against suspected crypto investment scams.

• Regulators tighten crypto licensing and anti-money laundering rules nationwide.

Australia’s securities regulator has intensified action against Yepbit after customers reported repeated problems accessing funds held on the trading platform. ASIC removed several related websites and warned consumers against dealing with the business. The regulator also rejected claims that it had frozen money held through Yepbit.

ASIC targets Yepbit over withdrawal complaints

ASIC received several reports from customers who said they could not withdraw money from Yepbit accounts. The platform markets digital asset and futures trading services to users across several countries, including Australia. ASIC said the business lacks the required Australian Financial Services Licence.

The regulator also said Yepbit does not appear on AUSTRAC’s Virtual Asset Service Provider Register. That register covers businesses offering certain crypto exchange, custody, transfer and related services in Australia. The platform lacks key regulatory approvals required for several financial and virtual asset activities.

ASIC urged consumers to confirm financial licences through its official professional registers before sending money. It also warned that company registration details do not prove that a business holds an AFSL. The agency added Yepbit to its Investor Alert List after reviewing the reported conduct.

ASIC rejects claims that it froze customer funds

Yepbit allegedly told customers that ASIC had frozen their money during audits or regulatory checks. ASIC directly rejected that explanation and said it had not blocked the return of customer funds. The regulator said such claims can divert attention from withdrawal and refund requests.

ASIC explained that it publicly announces formal action when it freezes money during enforcement proceedings. Therefore, consumers should verify claims involving regulators through official announcements rather than platform statements. The regulator also warned against businesses that request more payments before releasing customer balances.

Australia has recently faced similar schemes involving fake crypto trading platforms and fabricated account profits. Some operations demanded extra fees when users tried to withdraw money from supposed trading accounts. Authorities have also warned about recovery scams that target people after earlier financial losses.

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Australia expands website takedowns and crypto oversight

ASIC used its website disruption powers to remove several websites that appeared to operate under the Yepbit name. The agency also continues coordinating with other government bodies to remove harmful online investment sites. Website takedowns have become a regular part of Australia’s response to online financial scams.

The regulator previously removed thousands of phishing, fake investment, and crypto-related websites under the same disruption program. Earlier enforcement actions also targeted companies linked to coordinated online investment schemes and deceptive trading platforms. Those cases showed how fraudulent operators can imitate legitimate services while directing funds elsewhere.

Australia continues tightening licensing and anti-money laundering requirements for digital asset businesses. AUSTRAC expanded registration rules for virtual asset service providers and opened its public VASP register in June. ASIC also extended temporary licensing relief for eligible crypto firms seeking required approvals through September 30.