The Federal Court of Australia has absolved Block Earner, a crypto firm, from facing penalties for offering its Earner product without the necessary financial services license. Despite the seriousness of the contraventions, Block Earner was deemed to have acted honestly and responsibly in providing the product to consumers. Justice Ian Jackman, overseeing the case, acknowledged Block Earner's sincere efforts to adhere to regulations. The company sought legal advice and implemented thorough risk management policies when navigating the complex regulatory landscape as a new entity. The court noted clear violations of the Corporations Act but refrained from imposing financial penalties on Block Earner. The Australian Securities and Investments Commission (ASIC) brought forward the case, alleging that Block Earner's product lacked essential consumer protections. However, Justice Jackman criticized ASIC's press release for its misleading content on February 9, 2024, highlighting the inaccurate portrayal of the situation. ASIC's legal representatives admitted to the error and its potential to distort the facts. In a separate development, John Louis Anthony Bigatton, the national promoter for the now-defunct BitConnect crypto exchange, pleaded guilty to providing unlicensed financial services. BitConnect, accused of running a Ponzi scheme, halted its operations in 2018 amid accusations of defrauding investors of over $2.4 billion. Bigatton confessed to promoting BitConnect's lending platform and cryptocurrency without the mandatory Australian Financial Services license. His sentencing hearing has been scheduled for July 5, 2024.
Legal Case Involving Crypto Firms

by Giorgi Kostiuk
2 years ago

Other news
Consensys Eyes Mid-2026 IPO with Support from Major Banks

Consensys is preparing for a potential IPO in mid-2026, backed by major financial institutions.

PayPal Stock Faces Continued Pressure in 2025

PayPal's stock price has significantly declined, underperforming compared to other technology companies.

PayPal's Revenue Growth Stagnates Amid Stablecoin Competition

PayPal's revenue growth has slowed, raising concerns about its future performance.

Carbon Capture and Storage Market Set for Significant Growth

The carbon capture, utilization, and storage (CCUS) market is projected to grow significantly due to stringent government policies.

Water Security Emerges as a Critical Investment Theme

Water security is becoming a vital investment theme due to increasing water stress impacting various sectors, including semiconductor manufacturing and thermal power plants.

Green Hydrogen Market Projected to Skyrocket by 2030

The green hydrogen market is expected to grow significantly, driven by industrial decarbonization efforts.

Be the first to know about crypto news every day
Get crypto analysis, news and updates right to your inbox! Sign up here so you don’t miss a single newsletter