Australian Court Delivers Ruling Against Blockchain Startup Block Earner in Legal Dispute

Australian Court Delivers Ruling Against Blockchain Startup Block Earner in Legal Dispute


Australian Court Rules in Favor of ASIC in Legal Battle with Block Earner

An Australian court has ruled in favor of the Australian Securities and Investments Commission (ASIC) in a legal dispute involving the crypto startup Block Earner. The court found that Block Earner violated the Australian Corporations Act by offering an unlicensed financial product, which is a breach of sections 601ED and 911A of the Act.

ASIC Emerges Victorious

The recent legal battle between ASIC and Block Earner has resulted in a victory for ASIC. The court determined that Block Earner’s product offering violated Australia’s Corporations Act, specifically sections 601ED and 911A. Judge Ian Jackman ruled that Block Earner operated without the necessary Australian financial services license, thus breaching the Act. Additionally, the company was found to have run an unregistered managed investment scheme related to its product.

ASIC’s Request for an Order

Stay ahead in the crypto world with our newsletter!

Subscribe now for the latest updates, insights, and trends in the cryptocurrency market.

In its judgment issued on Jan. 31, ASIC requested an order against Block Earner’s “Earner” and “Access” products. While the “Access” product is still available, the “Earner” product was discontinued in November 2022. ASIC argued that both products qualify as financial products resembling a managed investment scheme and that Block Earner violated relevant sections of the Corporations Act by not having an Australian Financial Services Licence (AFSL).

Judge Rules in Favor of ASIC

After considering arguments from both ASIC and Block Earner, Judge Ian Jackman ruled in favor of ASIC. He concurred with ASIC’s assertion that violations of sections 601ED and 911A of the Act had been demonstrated regarding the “Earner” product. However, he noted that ASIC did not substantiate similar allegations concerning the “Access” product. This marks ASIC’s first successful legal action against a crypto company.

ASIC’s Focus on Consumer Protection

In September 2023, ASIC announced a four-year plan to enhance consumer protection against digital scams, including those related to cryptocurrencies. The agency aims to shield vulnerable consumers and small businesses from fraudulent activities. This strategic move follows a year of progress in achieving ASIC’s key objectives.

Penalties for ME Bank and AFS Licensees

Read Disclaimer
This page is simply meant to provide information. It does not constitute a direct offer to purchase or sell, a solicitation of an offer to buy or sell, or a suggestion or endorsement of any goods, services, or businesses. Lolacoin.org does not offer accounting, tax, or legal advice. When using or relying on any of the products, services, or content described in this article, neither the firm nor the author is liable, directly or indirectly, for any harm or loss that may result. Read more at Important Disclaimers and at Risk Disclaimers.

ME Bank was sentenced for providing false and misleading information to its home loan customers and failing to inform them about changes in interest rates and repayment amounts. The Federal Court imposed a penalty of $820,000 on ME Bank for these breaches. In a separate incident, AFS licensees were required to register their financial advisers by a specified deadline, with ASIC urging compliance through ASIC Connect.

Author – Contributor at | Website

Noah Rypton stands as an enigmatic fusion of crypto analyst, relentless researcher, and editorial virtuoso, illuminating the uncharted corridors of cryptocurrency. His odyssey through the crypto realms reveals intricate tapestries of digital assets, resonating harmoniously with seekers of all stripes. Noah’s ability to unfurl the labyrinthine nuances of crypto intricacies is elegantly interwoven with his editorial finesse, transmuting complexity into an engaging symphony of comprehension.

Subscribe to our Social Media for Exclusive Crypto News and Insights 24/7!

Email me the hottest Crypto news!

You may also like

Share via
Share via