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Block Earner secures court win as 4M Australians watch crypto case

Block Earner secures court win as 4M Australians watch crypto case

GrafaGrafa2025/04/23 07:00
By:Mahathir Bayena

The Federal Court of Australia has ruled that Block Earner’s crypto-linked fixed-yield product does not require a financial services license, dismissing the case brought by the Australian Securities and Investments Commission (ASIC).

The April 22 judgment was issued by Justices David O’Callaghan, Wendy Abraham, and Catherine Button.

They determined that Block Earner’s product was structured as a loan, not an investment or managed investment scheme.

The court found that customers lent crypto assets to Block Earner under fixed terms in exchange for interest payments.

There was no pooling of funds or customer exposure to the broader business.

This meant the product did not fall under the legal definitions of a financial product or derivative.

The judges noted that the product’s details were clearly outlined and that customer rights were fixed by contract, not tied to a pooled investment’s performance.

ASIC had filed the civil suit in November 2022, arguing that Block Earner needed a license to offer three fixed-yield crypto products.

A previous court ruling in February 2024 had sided with ASIC.

However, in June 2024, the court declined to impose financial penalties, citing Block Earner’s honest conduct and the legal advice it sought before launching the products.

With the latest ruling, the court ordered ASIC to cover Block Earner’s legal costs.

Block Earner’s chief commercial officer, James Coombes, welcomed the decision, saying it confirmed that crypto should not be treated differently from other asset classes under existing law.

He emphasised the product was simply a loan agreement, not a managed investment with shared profits.

Despite the ruling, Block Earner will not revive its discontinued Earner product.

Instead, it will continue to focus on crypto-backed loan offerings.

ASIC said it is reviewing the decision and has not announced whether it will appeal.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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