The Australian Securities and Investments Commission (ASIC) has sued the FinTech company Block Earner for allegedly offering cryptocurrency investments without a license.
“Block Earner offered a range of fixed-yield earning products based on crypto-assets under the names USD Earner, Gold Earner and Crypto Earner (collectively, the earner products),” the regulator said in a Wednesday (Nov. 23) news release.
In a suit filed in Australia’s federal court, ASIC alleged that these products were financial products that should have been licensed as a managed investment scheme. Block Earner, based in Sydney, did not immediately respond to PYMNTS’ request for comment.
“We are concerned that Block Earner offered financial products without appropriate registration or an Australian Financial Services license, leaving consumers without important protections,” ASIC Deputy Chair Sarah Court said in the release. “Simply because a product hinges on a crypto-asset, does not mean it falls outside financial services law.”
ASIC said in the release it is asking the court for “declarations, injunctions and pecuniary penalties.”
The case comes amid a worldwide campaign to increase oversight on cryptocurrency in the wake of the FTX collapse and a rise in crypto-related crime.
“From trading at less than a dollar in its first few years of existence to over $60,000 in late 2021, the story of bitcoin’s meteoric rise has often been used by scam artists as bait for…
