ASIC Denies Yepbit's Claims of Frozen Customer Funds
Australian regulator condemns false statements by Yepbit platform.
1ASIC's Warning on Yepbit
The Australian Securities and Investments Commission (ASIC) refuted claims that the Yepbit platform had frozen customer funds. The regulator stated that the platform falsely blamed ASIC for blocking refunds. Yepbit's statements about audits and regulatory requirements were deemed incorrect. ASIC emphasized that such claims were used to deflect refund requests.
2Yepbit's Licensing Status
ASIC clarified that Yepbit does not hold an Australian Financial Services License (AFSL). The platform is not authorized to provide financial services or advice in Australia. Additionally, Yepbit is absent from AUSTRAC's Virtual Asset Service Provider Register. This indicates the platform operates without legal authorization.
3Philippines' Sanction Against Yepbit
The Philippine Securities and Exchange Commission issued a cease-and-desist order against Yepbit and Fidelity Capital Investment Group in February 2025. The regulator found unregistered investment activities under the FCIG-Yepbit Investment Trading Project. Participants were promised returns between $500-$3,000, with the scheme displaying Ponzi-like characteristics.
4ASIC's Website Takedown Policy
ASIC removed approximately 6,900 scam and phishing websites in the year ending June 2025, including 2,400 cryptocurrency-related scams. Website takedowns have become a key part of ASIC's anti-fraud efforts. Four Yepbit domains were added to ASIC's Investor Alert List as part of these measures.
5Australia's Digital Asset Regulations
Australia is tightening rules for digital asset businesses. Providers dealing in financial products faced a May 2025 deadline to enter the AFS licensing process. A separate platform regime is scheduled to commence in April 2027. These regulations aim to prevent fraud in the crypto sector.
6Steps for Affected Investors
ASIC advised affected investors to contact their banks and report suspected scams. The regulator didn't disclose who controls Yepbit or how many investors complained. The fate of balances shown in investor accounts couldn't be independently verified.
7Tactics Used by Yepbit
ASIC noted that Yepbit's tactic of blaming regulators isn't new. The Australian regulator had previously identified cases where operators blamed regulators when investors couldn't withdraw funds. In March 2025, scammers impersonating ASIC demanded payments to release assets.
8Critical Warning for Crypto Investors
The Yepbit case underscores the need for crypto investors to exercise caution with unlicensed platforms. While appearing on ASIC's alert list doesn't alone prove fraud, it serves as a significant warning sign. Investors should prioritize using licensed and regulated platforms for their transactions.