Following a lawsuit initiated by Australia’s markets regulator against Sydney-based cryptocurrency start-up Block Earner, an Australian court rendered a divided ruling.
Hugh Jackman’s brother, judge Ian McNeil Jackman, declared on Friday that Block Earner had engaged in unlawful financial services practices when promoting its cryptocurrency-backed Earner product.
But Jackman denied any accusations about Block Earner’s DeFi “Access” service. During a hearing set on March 1, 2024, the court will decide how much of a fine Block Earner must pay.
Block Earner was sued by the Australian Securities and Investments Commission (ASIC) in November 2022 on the grounds that the fintech firm offered a number of unlawful fixed-yield earning products based on cryptocurrency assets. Block Earner, which has support from cryptocurrency exchange Coinbase, voluntarily ended its fixed-yield “Earner” service that same month.
“This important decision provides some clarity as to when crypto-backed products should be considered financial products which require licencing under the law,” stated Sarah Court, deputy chair of ASIC.
The company released a statement saying, “Block Earner can continue to offer Access, and the case provides guidance for other crypto businesses highlighting ‘a positive step forward’ that ‘provides a glimpse into a future where DeFi can thrive.”