Australia’s securities regulator appeals loss in Finder Wallet case

ASIC intends to challenge the recent ruling in favor of Finder Wallet, a subsidiary of in Australia, concerning their “Earn” product, which was deemed compliant with Australian financial regulations by a federal court.

Previously, ASIC contended that Finder Wallet’s Earn product didn’t have the necessary license or authorization. However, on March 14, Federal Court Judge Brigitte Markovic threw out the case. She determined that ASIC hadn’t proven that Finder Wallet’s Earn program qualified as a “debenture” under the Corporations Act – a type of debt security in which companies pledge to repay borrowed funds with interest.

In the document submitted on April 10, ASIC contended that Markovic made a mistake in reaching that conclusion since no funds were transferred or loans granted to Finder Wallet during an investor’s utilization of the Finder Earn service.

Furthermore, Finder Wallet did not promise to pay back funds as if it owed a debt, according to the securities regulatory body.

Australia's securities regulator appeals loss in Finder Wallet case

“ASIC contested this ruling as they were worried that the Finder Earn product was sold without the necessary license or approval, depriving consumers of essential safeguards,” according to ASIC’s announcement on April 10.

The Full Federal Court, our country’s second most superior court after the High Court of Australia, will review the appeal at a yet-to-be-determined date. They handle appeals originating from the Federal Court when the cases involve significant issues.

CryptoMoon has reached out to Finder for comment.

From February to November 2022, users of Finder Earn had the opportunity to swap Australian dollars for TrueAUD (TAUD), a stablecoin representing the Australian dollar value. After completing this transaction, they could transfer their TAUD to their Finder Wallet and earn a return of 4-6% on their investment.

In December 2022, Finder Wallet was sued by ASIC for allegedly offering an unlicensed financial product without proper authorization.

ASIC asserted that Finder Wallet discontinued the product about a month prematurely, communicating their reservations to the company. Nevertheless, a representative shared with CryptoMoon then that it was “a tactical business move” in response to heightened interest rates and not instigated by regulatory scrutiny.

A representative from Finder recently shared with CryptoMoon that there are currently no plans to reintroduce Finder Earn following the court verdict last month.

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2024-04-11 03:11