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The ongoing depreciation challenge faced by ASIC owners as technological advancements in mining equipment persist, according to CoinShares. (Read More)
CleanSpark is acquiring more sites in Tennessee after buying GRIID Infrastructure's facilities there.
Quantum rigs might pose a bigger threat to blockchains than quantum decryption.
The rise in crypto scams in 2024 underscores the need for vigilance in the Web3 space, according to the Australian Securities and Investments Commission (ASIC). (Read More)
Bitdeer Technologies Groups stock price dropped to $6.33 after it announced a senior convertible notes offering.
Australia’s Securities and Investments Commission (ASIC) has filed a lawsuit against the Australia Securities Exchange (ASX) Ltd., accusing it of misleading statements about its blockchain trade settlement project, according to an Aug. 14 statement. False statements ASIC claims the ASX falsely stated in February 2022 that its project was “on track” for an April 2023 […]
The post Australian watchdog files lawsuit against ASX over misrepresenting $165 million blockchain project appeared first on CryptoSlate.
The US miner is now the second-largest by market cap, after flipping Riot Platforms.
The CEOs of SunnySide Digital and Cryptech Solutions form a new company Synteq Digital to meet the needs of the growing digital mining and high-performance computing (HPC) industries.
John Bigatton has been convicted for unlicensed financial advice, impacting the credibility of Australias financial sector.
Two months after pleading guilty, BitConnects national promoter in Australia, John Bigatton, was convicted by the court for providing unlicensed financial advice. He was subsequently released on a recognisance of good behaviour for three years.
The Australian courts decision on Friday came after Bigatton pleaded guilty in May for his role in promoting the cryptocurrency scam to retail investors in the country. He promoted the fraudulent scheme on social media, hosted seminars across the country, and had face-to-face meetings with victims, persuading them to invest in the scheme.
Licensing Is a Must
The Australian Securities and Investments Commission (ASIC), which indicted Bigatton, reiterated that many crypto assets are financial products, and even seminars and promotions around them would require a licence.
Providing unlicensed financial advice denies Australian investors access to key protections and undermines trust and confidence in Australias financial services industry, said ASICs Deputy Chair, Sarah Court. ASIC is committed to taking action against the unlawful promotion of high-risk digital assets to protect Australian investors.
This matter sends a clear message to Australians: that ASIC has and will act when unlicensed operators try to take advantage of Australian investors.
A $2.4 Billion Scam
Although the case has been legally framed around unlicensed financial activities, BitConnect was a massive scam. The scheme lured victims with absurdly high fixed interest rates.
BitConnect promoted its scheme heavily worldwide in 2016 and 2017. It incentivized invites and referrals to expand its network of investorsor rather, victims. The crypto scheme suddenly evaporated in 2018, and its websites and social media handles disappeared. This led to investigations by agencies in several countries.
The scam is estimated to have duped its investors out of approximately AU$2.4 billion globally.
According to ASIC, Bigatton promoted BitConnect locally in Australia, including its lending platform and tokens. He conducted four seminars nationwide and promoted it with two social media posts.
He claimed that BitConnect Coins would increase in value to at least US$1,000 and the scheme was better than any term deposit.
[The] offending involved a breach of trust in that the recipients of the financial product advice were entitled to have an expectation that they were receiving advice from a sufficiently licensed and regulated individual, the Aussie Judge stated.
This article was written by Arnab Shome at www.financemagnates.com.Core Scientific is now the first to use Blocks new ASIC technology for large-scale mining operations.
A federal court in Australia has favoured Block Earner, a cryptocurrency company, by relieving it from the liability of paying a penalty for offering interest-bearing crypto products without an appropriate licence.
A Regulatory Disappointment?
The judgement today (Tuesday) followed actions by the Australian Securities and Investments Commission (ASIC) against Web3 Ventures Pty Ltd, which operates as Block Earner. The regulator said it is reviewing the decision.
Block Earner offered several cryptocurrency-based fixed-yield earning products, including USD Earner, Gold Earner, and Crypto Earner, collectively known as Earner Products. The company operated as an AUSTRAC-registered digital currency exchange but did not hold an Australian Financial Services (AFS) licence.
According to ASIC, these 'Earner Products' are financial products that fall under managed investment schemes and require proper licensing. It is now seeking declarations, injunctions, and pecuniary penalties.
Block Earner had already ceased offering the Earner products on November 16, 2022, which was less than a month after receiving ASICs initial letter labelling the products as a managed investment scheme and an investment facility. However, the company maintained that it discontinued the product due to commercial reasons.
"From the beginning, it was never our intention to break or circumvent the rules," said Charlie Karaboga, CEO of Block Earner. "As a startup, we did everything within our power to comply, including obtaining legal advice and creating a comprehensive risk framework. While we are obviously disappointed about the findings of contravention in relation to the Earner product, we are pleased that the judge recognized our honest efforts and relieved Block Earner from liability for the penalty.
Courts Mixed Decisions
Interestingly, the Aussie court also agreed earlier this year that Block Earner needed an AFS licence to offer its products. However, the court quashed the regulators allegations of characterising Block Earner's variable yield crypto-asset-based offering as a financial product.
In the latest ruling, the court highlighted that Block Earner acted honestly and not carelessly when it offered the Earner product.
ASIC was seeking a civil penalty of AU$350,000 from Block Earner. However, the crypto business countered in court that no penalty should be awarded, with an alternative proposal of AU$60,000 in penalty, which is three times the benefit the company received from its Block Earner products.
It is appropriate that no penalty be awarded, consistent with my conclusion that Block Earner should be relieved from liability, the judge wrote in the judgement. Even if I had not granted that relief, I would not have awarded any penalty.
This article was written by Arnab Shome at www.financemagnates.com.
The Australian federal court relieved Block Earner from paying a penalty in the local financial regulators legal action over unlicensed crypto yield-bearing products.
Hiddup continues advertising returns ranging from 6 to 16% per annum through blockchain mining on its website while facing legal action.
TheAustralian Securities and Investments Commission (ASIC) has filed an appealagainst a federal court ruling that absolved cryptocurrency provider Block Earner of paying a penalty for offering unlicensed financial services relatedto its digital assets product.
ASIC Appeals CourtDecision Relieving Block Earner of Penalty in Crypto Case
TheAustralian regulator announced on Tuesday that it has appealed the FederalCourt's decision and will continue to seek the imposition of a financialpenalty. In the past, it had requested AU$350,000.
Interestingly,the Court hadpreviously found that Block Earner engaged in unlicensed financial servicesand operated an unregistered managed investmentscheme from March to November 2022.
Despiteacknowledging the seriousness of Block Earner's contraventions, theCourt granted relief on June 4, citing among other factors that the companyhad acted honestly and not carelessly when it offered the Earner product. ASIChas challenged this ruling, filing a Notice of Appeal that outlines the groundson which it believes the Court erred in granting the relief.
We have appealed the Federal Courts decision to relieve Block Earner from liability to pay a penalty for contraventions related to its crypto-related Earner product https://t.co/zAzlxNfjqv
ASIC Media (@asicmedia) June 18, 2024From thebeginning, it was never our intention to break or circumvent the rules," CharlieKaraboga, CEO of Block Earner, commented after the latest Courts decision."As a startup, we did everything within our power to comply, includingobtaining legal advice and creating a comprehensive risk framework.
What Now?
BlockEarner, an AUSTRAC-registered digital currency exchange that operates withoutan Australian Financial Services (AFS) license, had faced allegations from ASICthat both its fixed-yield Earner product and its variable-yield Access productconstituted financial products requiring a license.
While theCourt upheld ASIC's claims regarding the Earner product, it dismissed theallegations related to the Access product. ASIC has confirmed it will notappeal the Court's findings on the Access product.
Crypto-backedproducts should be considered financial products that require licensing underthe law, Sarah Court, ASIC's Deputy Chair, commented in February. Cryptoassets are risky, inherently volatile, and complex. ASIC remains concerned thatconsumers do not fully appreciate the risks associated with products involvingcrypto-assets.
The FullFederal Court will hear ASIC's appeal on a date yet to be determined. Theoutcome could set a precedent for how Australian regulators approachenforcement actions against crypto firms and the standards to which such firmsare held in complying with financial services laws.
This article was written by Damian Chmiel at www.financemagnates.com.
The new NiceHash firmware will combine the advantages of two products.
Discover the Bitaxe Ultra, an open-source Bitcoin ASIC miner leveraging Bitmain's BM1366 chip for efficient home mining. (Read More)
Following the investment, Tether expects close collaboration with Bitdeer across several key infrastructure areas, CEO Paolo Ardoino said.
The Federal Court has found BPS Financial Pty Ltd (BPS)guilty of engaging in unlicensed conduct concerning the 'Qoin Wallet', anon-cash payment facility utilizing a crypto-asset token known as 'Qoin.' Thejudgment was delivered by Justice Downes in proceedings brought by ASIC.
Further Proceedings Ordered by the Court
The court determined that BPS, from January 2020 onwards(with a brief exception of a 10-month period), violated the Corporations Act bylacking an Australian Financial Services Licence. Furthermore, BPS was notauthorized by any licensee to issue or provide financial advice regarding theQoin Wallet. Justice Downes also found BPS guilty of misleading or deceptiveconduct and propagating false representations about the Qoin Wallet.
Among the misleading claims, BPS falsely asserted that theQoin Wallet was officially registered or approved, misrepresented its usabilityfor purchasing goods and services from Qoin merchants, and misled consumersregarding the exchangeability of Qoin tokens for other crypto-assets orcurrencies.
The court disclosed that prior to November 2021, the only digitalcurrency exchange accepting Qoin was BTX Exchange, which had affiliations withBPS and did not facilitate independent exchanges of crypto assets. The court has mandated the involved parties to discussfurther proceedings, including penalties, to address the remaining issues inthe case. These deliberations are slated to occur later in 2024.
The Federal Court has found BPS Financial engaged in unlicensed conduct over a non-cash payment facility which used a #crypto asset token called Qoin https://t.co/tHQkU9lUpQ pic.twitter.com/2bWhGGyhej
ASIC Media (@asicmedia) May 3, 2024Legal Scrutiny over Sales Practices of Payment Facility
BPS aggressively promoted Qoin tokens to both retailconsumers and business owners, colloquially termed 'Qoin Merchants,' as amethod of payment for goods and services. As of September 30, 2022, the QoinWallet had been issued over 93,000 times, with BPS accumulating over $40million from Qoin Token sales. Justice Downes affirmed that the Qoin Walletconstituted a financial product, specifically categorizing it as a non-cashpayment facility.
Joe Longo, ASIC Chair, said: Crypto assets are highlyvolatile, inherently risky, and complex. This makes it critically importantthat providers have the appropriate licences and authorisations, and thatinvestors are provided with clear and accurate information. This case is an importantreminder that many crypto products are financial products and that providersneed to hold a licence.
This article was written by Tareq Sikder at www.financemagnates.com.
Qoin still has a class-action suit pending against it in addition to the case brought by regulator ASIC.
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