In November 2022, ASIC began legal proceedings against Block Earner, claiming that the company offers Block Earner, Earner and DeFi Access products without permission to provide financial services. The agency's website states that Block Earner is the trading name of the Web3 Ventures Pty Ltd exchange, registered with the Australian Center for Accounting and Analysis of Financial Transactions (AUSTRAC). However, the company does not have an ASIC license.
Judge Ian Jackman concluded that between March and November 2022, Block Earner provided unlicensed financial services and promoted unregistered investment schemes related to Earner's product. However, the court recognized that the management of Block Earner considered the possibility of obtaining a license when distributing the Earner product.
The Australian court also took into account the company's internal research and its consultations with investment specialists, as a result of which Block Earner concluded that a license is not required for all products. ASIC asked the court to impose a fine of 250,000 Australian dollars (about $234,000) for Block Earner, but the judge refused to comply with the regulator's requirement.
Charlie Karaboga, CEO of Block Earner, stated: before launching the software, the company received legal advice. Karaboga stressed that the company strives to conduct business within the framework of the law and in accordance with regulatory standards.
Recently, ASIC lost a lawsuit against another cryptocurrency company, Finder. The court ruled that the Finder Earn program did not violate local laws.