ASIC’s Legal Battle with Block Earner
The Australian Securities and Investments Commission (ASIC) is escalating its legal confrontation with the cryptocurrency firm Block Earner by requesting permission from the High Court to appeal a recent verdict that favored the company. This move aims to settle critical questions surrounding the classification of yield products related to digital assets, which are gaining traction in the financial landscape.
Core Issues in the Appeal
ASIC’s appeal centers on the need for clarity regarding the treatment of interest-bearing and asset conversion products under the Corporations Act. The regulator emphasized that the existing definition of a financial product is intentionally broad and adaptable to various technologies, asserting that a definitive ruling is vital for protecting public interests across all financial offerings—not just those involving cryptocurrencies.
To pursue this matter in Australia’s highest court, ASIC must secure special leave, granted exclusively for cases of substantial legal significance or broader public interest. Therefore, the High Court does not automatically consider appeals; ASIC will need the court’s consent prior to proceeding with its challenge.
Background of the Dispute
The origins of this dispute trace back to an April decision by the Full Federal Court, which reversed prior judgments regarding Block Earner’s crypto product, “Earner”. ASIC had contended that this particular offering, which provided fixed yields, was made without the appropriate financial services license. However, the Full Court determined that the product did not constitute a financial product as per the current legal framework, undermining ASIC’s attempt to regulate cryptocurrency services similarly to conventional financial operations.
This legal saga began in February 2024 with an earlier ruling that deemed Block Earner’s operations unlicensed for offering the Earner product within specified parameters before the product was withdrawn in June 2025. Notably, while the court upheld ASIC’s objections regarding the fixed-yield product, it dismissed claims against Block Earner’s variant, “Access”, and absolved the firm of associated penalties.
Response from Block Earner
CEO Charlie Karaboga of Block Earner, the trading name for Web3 Ventures Pty Ltd, expressed how the company has sought to align its innovative financial products with pre-existing regulatory standards. However, following the court’s original ruling in favor of Block Earner, the firm announced it would no longer offer the Earner product.
As of this moment, the High Court has not scheduled a date to deliberate on ASIC’s appeal request. Block Earner has been contacted for further comments regarding the situation.
