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The Federal Court of Australia has relieved crypto firm Block Earner from paying a penalty for offering its Earner product without the necessary financial services license. The court found that although the contraventions were serious, Block Earner acted honestly and not carelessly when providing the product to consumers. 
Justice Ian Jackman, presiding over the case, <a href="https://asic.gov.au/about-asic/news-centre/find-a-media-release/2024-releases/24-119mr-court-relieves-block-earner-from-liability-to-pay-a-penalty-for-offering-unlicensed-crypto-related-product-earner/" target="_blank" rel="noopener">recognized</a> Block Earner’s genuine attempts to comply with regulations. The company had obtained legal counsel advice and robust risk management policies and procedures while starting as a new company in a rather volatile regulatory environment. The court thus found obvious violations of the Corporations Act although it refrained from penalizing Block Earner financially. 
The Australian Securities and Investments Commission (ASIC) initiated the case, arguing that Block Earner’s Earner product lacked important consumer protections. However, Justice Jackman <a href="https://download.asic.gov.au/media/gejnbox2/24-119mr-penalty-judgment_2024-06-04.pdf" target="_blank" rel="noopener">criticized</a> ASIC’s press release on February 9, 2024, stating that it contained a misleading headline. ASIC’s legal representatives acknowledged the inaccuracy and its tendency to misrepresent the situation. 
In a related <a href="https://www.cryptotimes.io/2024/05/18/australian-admits-role-in-bitconnect-ponzi-scheme-promotion/">report</a>, John Louis Anthony Bigatton, the national promoter for the now-defunct BitConnect crypto exchange, pleaded guilty to providing unlicensed financial services. BitConnect, accused of operating as a Ponzi scheme, ceased operations in 2018 amidst allegations of defrauding investors of over $2.4 billion. Bigatton admitted to promoting BitConnect’s lending platform and cryptocurrency without the required Australian Financial Services license. His sentencing hearing was set for July 5, 2024.

Crypto Firm Block Earner Relieved of Penalty in ASIC Case

The Crypto Times

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