{"id":40692,"date":"2025-04-23T18:00:29","date_gmt":"2025-04-23T15:00:29","guid":{"rendered":"https:\/\/coinengineer.net\/blog\/?p=40692"},"modified":"2025-04-23T14:51:20","modified_gmt":"2025-04-23T11:51:20","slug":"australian-federal-court-concludes-block-earner-case","status":"publish","type":"post","link":"https:\/\/coinengineer.net\/blog\/australian-federal-court-concludes-block-earner-case\/","title":{"rendered":"Australian Federal Court Concludes Block Earner Case"},"content":{"rendered":"<p class=\"\" data-start=\"58\" data-end=\"211\"><a href=\"https:\/\/coinengineer.net\/blog\/massive-912m-inflow-into-bitcoin-etfs\/\"><strong>The Federal Court of Australia<\/strong><\/a> has ruled in favor of digital asset platform <strong>Block Earner<\/strong>, rejecting the financial regulator <strong>ASIC&#8217;s<\/strong> request for penalties.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_71 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/coinengineer.net\/blog\/australian-federal-court-concludes-block-earner-case\/#Crypto-Based_%E2%80%98Earner_Product_Didnt_Require_a_License\" title=\"Crypto-Based \u2018Earner\u2019 Product Didn\u2019t Require a License\">Crypto-Based \u2018Earner\u2019 Product Didn\u2019t Require a License<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/coinengineer.net\/blog\/australian-federal-court-concludes-block-earner-case\/#ASICs_Appeal_Rejected_by_the_Court\" title=\"ASIC\u2019s Appeal Rejected by the Court\">ASIC\u2019s Appeal Rejected by the Court<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/coinengineer.net\/blog\/australian-federal-court-concludes-block-earner-case\/#Block_Earner_Confirms_No_Return_for_%E2%80%98Earner_Product\" title=\"Block Earner Confirms No Return for \u2018Earner\u2019 Product\">Block Earner Confirms No Return for \u2018Earner\u2019 Product<\/a><\/li><\/ul><\/nav><\/div>\n<h2 data-start=\"213\" data-end=\"271\"><span class=\"ez-toc-section\" id=\"Crypto-Based_%E2%80%98Earner_Product_Didnt_Require_a_License\"><\/span>Crypto-Based \u2018Earner\u2019 Product Didn\u2019t Require a License<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p class=\"\" data-start=\"273\" data-end=\"599\">According to the court&#8217;s decision on Tuesday, the previously offered \u2018Earner\u2019 product by Block Earner was not classified as a managed investment scheme, as ASIC claimed, but rather seen as a <strong data-start=\"464\" data-end=\"484\">loan-based model<\/strong>. Therefore, it was not subject to regulation under the <strong data-start=\"540\" data-end=\"588\">Australian Financial Services License (AFSL)<\/strong> framework.<\/p>\n<p class=\"\" data-start=\"601\" data-end=\"758\">The \u2018Earner\u2019 product was available between March and November 2022, allowing users to lend specific cryptocurrencies in return for a <strong data-start=\"734\" data-end=\"757\">fixed interest rate<\/strong>.<\/p>\n<h2 data-start=\"760\" data-end=\"799\"><span class=\"ez-toc-section\" id=\"ASICs_Appeal_Rejected_by_the_Court\"><\/span>ASIC\u2019s Appeal Rejected by the Court<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p class=\"\" data-start=\"801\" data-end=\"1114\"><strong>The Australian Securities and Investments Commission (ASIC)<\/strong> had initiated legal proceedings, claiming that both the \u2018Access\u2019 and \u2018Earner\u2019 products violated corporate law. In an earlier ruling in February 2024, the court found the offerings required proper licensing and suggested Block Earner should be penalized.<\/p>\n<p class=\"\" data-start=\"1116\" data-end=\"1316\">However, in June 2024, the court concluded that <strong data-start=\"1164\" data-end=\"1214\">Block Earner had acted with integrity and care<\/strong>, and therefore should not face any financial penalty. ASIC had been seeking a fine of up to $350,000.<\/p>\n<p class=\"\" data-start=\"1318\" data-end=\"1540\">Most recently, Judges <strong data-start=\"1340\" data-end=\"1398\">David O\u2019Callaghan, Wendy Abraham, and Catherine Button<\/strong> dismissed ASIC\u2019s 2023 appeal and ordered the regulator to pay all legal costs associated with both the original trial and the appeal process.<\/p>\n<h2 data-start=\"1542\" data-end=\"1598\"><span class=\"ez-toc-section\" id=\"Block_Earner_Confirms_No_Return_for_%E2%80%98Earner_Product\"><\/span>Block Earner Confirms No Return for \u2018Earner\u2019 Product<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p class=\"\" data-start=\"1600\" data-end=\"1777\">Following the favorable decision, Block Earner clarified that the legal process had come to an end but that there are <strong data-start=\"1718\" data-end=\"1763\">no plans to relaunch the \u2018Earner\u2019 product<\/strong> in Australia.<\/p>\n<p class=\"\" data-start=\"1779\" data-end=\"2120\">James Coombes, co-founder of the company, stated that the product was voluntarily shut down in November 2022 and would not be reintroduced. \u201cThis case demonstrates the importance of <strong data-start=\"1961\" data-end=\"2011\">regulatory frameworks evolving with technology<\/strong>,\u201d he said, warning that Australia could fall behind more crypto-friendly jurisdictions if it fails to adapt.<\/p>\n<p class=\"\" data-start=\"2122\" data-end=\"2274\">Co-founder <strong data-start=\"2133\" data-end=\"2153\">Charlie Karaboga<\/strong> also commented on the outcome, saying the ruling \u201c<strong data-start=\"2204\" data-end=\"2256\">brings closure to a long and challenging chapter<\/strong>\u201d for the company.<\/p>\n<p class=\"\" data-start=\"2276\" data-end=\"2353\">ASIC, in a short statement, noted it is still reviewing the court\u2019s decision.<\/p>\n<hr \/>\n<p class=\"\" data-start=\"2276\" data-end=\"2353\"><i>You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don\u2019t forget to follow us on our\u00a0<\/i><strong><a href=\"https:\/\/t.me\/coinengineernews\" target=\"_blank\" rel=\"nofollow noopener\"><i>Telegram,\u00a0<\/i><\/a><a href=\"https:\/\/www.youtube.com\/@CoinEngineer\" target=\"_blank\" rel=\"nofollow noopener\"><i>YouTube<\/i><\/a><\/strong><i><strong>,<\/strong> and\u00a0<\/i><strong><a href=\"https:\/\/twitter.com\/coinengineers\" target=\"_blank\" rel=\"nofollow noopener\"><i>Twitter<\/i><\/a><\/strong><i><strong>\u00a0<\/strong>channels for the latest\u00a0<\/i><strong><a href=\"https:\/\/coinengineer.io\/news\/\" target=\"_blank\" rel=\"nofollow noopener\"><i>news<\/i><\/a><\/strong><i><strong>\u00a0<\/strong>and updates.<\/i><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Federal Court of Australia has ruled in favor of digital asset platform Block Earner, rejecting the financial regulator ASIC&#8217;s request for penalties. Crypto-Based \u2018Earner\u2019 Product Didn\u2019t Require a License According to the court&#8217;s decision on Tuesday, the previously offered \u2018Earner\u2019 product by Block Earner was not classified as a managed investment scheme, as ASIC<\/p>\n","protected":false},"author":29,"featured_media":40695,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[14760,14759,14761,14758],"class_list":["post-40692","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","tag-australian-financial-services-license-afsl","tag-block-earner","tag-the-australian-securities-and-investments-commission-asic","tag-the-federal-court-of-australia"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Australian Federal Court Concludes Block Earner Case - Coin Engineer<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/coinengineer.net\/blog\/australian-federal-court-concludes-block-earner-case\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Australian Federal Court Concludes Block Earner Case - Coin Engineer\" \/>\n<meta property=\"og:description\" content=\"The Federal Court of Australia has ruled in favor of digital asset platform Block Earner, rejecting the financial regulator ASIC&#8217;s request for penalties. 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