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Gungun Bhatia
Nov 23, 2022
by Gungun Bhatia

Block Earner Sued For Alleged Unauthorized Crypto Services

Block Earner Sued

Table of contents

  1. Block Earner Provides Return on Crypto Holdings
  2. Market Investment Instruments
Block Earner, a fintech business in Sydney, has been sued by Australia's financial watchdog over suspicions that it sold unregistered cryptocurrency goods.

Block Earner Provides Return on Crypto Holdings

There are numerous levels of products available from Block Earner that provide a return on cryptocurrency holdings. According to the Australian Securities and Investment Commission, or ASIC, these services are unauthorized managed investment schemes that ought to have been regulated.

In a statement given by the regulator, ASIC stated that it has started a civil fine case with the federal court to obtain proclamations, injunctions, and monetary sanctions. The court has not yet set a date for the initial hearing.

Market Investment Instruments

ASIC Deputy Chair Sarah Court said in another statement the court is concerned that Block Earner marketed investment instruments without the proper registration or an Australian Financial Services license, leaving customers without significant safeguards. The statement further reads that just because a product depends on a crypto asset doesn't mean it violates financial services legislation.

Aave CEO Stani Kulechov and Coinbase Ventures were among the investors that contributed $4.5 million to Block Earner's seed fundraising round, established in 2021. The platform uses the Aave and Compound protocols to lend out customer assets.

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Block Earner Sued For Alleged Unauthorized Crypto Services
Gungun Bhatia
Gungun is an enthusiastic writer that likes to create content for various aspects of the blockchain and crypto industry. She carries out extensive research and provides readers with informative and high-quality material.

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