Block Earner Sued Over Crypto Yield Products, CEO Calls For Clarity

Block Earner CEO Charlie Karaboga said it was a "disappointing result" considering he had spent "considerable resources" to comply with existing guidelines.

The CEO of fintech firm Block Earner has slammed Australia's financial licensing regime for a 'lack of clarity' after his company was sued by the country's financial services regulator for providing products unlicensed crypto investment tools.

The Australian Securities and Investments Commission (ASIC) announced on November 23 local time that it had initiated civil action against the company for offering three crypto-linked fixed-return products without an Australian Financial Services (AFS) license.

ASIC said the products should have been licensed because they are "managed investment plans" where investors contribute money that is pooled for an interest in the plan.

The products, named "Crypto Earner", "USD Earner" and "Gold Earner", offered returns through users depositing Australian dollars which would be converted into Bitcoin (BTC), Ether (ETH), USD Coin (USDC ) or PAX Gold (PAXG) depending on the product according to the Block Earner website.

The crypto-assets are then loaned to borrowers on the Decentralized Finance (DeFi) Aave (AAVE) and Compound Finance (COMP) protocols to generate yield for the product.

ASIC Vice President Sarah Court has expressed concern that Block Earner was offering the products without "proper registration" or an AFS license that she claimed...