Australia’s High Court rules against Block Earner

Australia’s High Court ruled Block Earner’s fixed-yield crypto product needed a financial services licence, siding with ASIC. The case returns to the Full Federal Court for penalties.

Australia’s High Court has unanimously ruled in favor of the Australian Securities and Investments Commission (ASIC) in its appeal regarding Block Earner’s former fixed-yield digital asset product. The court found that the product, offered by Web3 Ventures Pty Ltd trading as Block Earner, required an Australian financial services licence under current law. The High Court determined that the product functioned as a facility for financial investment and met the legal definition of a derivative, as investor returns depended on the value of underlying digital assets and exchange rates. This decision overturns a previous appeal court ruling. The case now returns to the Full Federal Court, which will consider penalties. ASIC had initiated civil penalty proceedings against Block Earner in November 2022, arguing the product was offered without the necessary licence, leaving investors without key protections.