Catenaa, Sunday, May 04, 2025-Block Earner, a Sydney-based crypto lender, has won its legal battle against the Australian Securities and Investments Commission (ASIC), with the Federal Court of Australia ruling that its crypto-backed “Earner” product did not violate local financial regulations.
The three-year-long dispute centered on allegations by ASIC that Block Earner’s crypto product required a financial services license.
The court, in a decision issued Tuesday, dismissed the charges, siding with Block Earner’s claim that the Earner product functioned as a fixed-term loan agreement, not a financial investment.
The ruling overturned an earlier judgment that had favored ASIC.
In its decision, the court also ordered ASIC to cover all of Block Earner’s legal costs associated with both the original trial and the appeal.
The case dates back to November 2022, when ASIC first filed the lawsuit, arguing that the Earner product violated Australian financial laws. Block Earner had paused offering the product during the legal proceedings.
Although victorious in court, Block Earner announced that it does not plan to relaunch the Earner product in the Australian market. The case marks a significant win for the crypto sector, as it may set a precedent for how regulators approach crypto-backed products in the future.
