The Australian Securities and Investments Commission (ASIC) has appealed the Federal Court’s decision to dismiss ASIC’s proceedings against Finder Wallet Pty Ltd for allegedly providing financial services without a licence, breaching product disclosure requirements and failing to comply with design and planning obligations. distribution over encryption. “Finder Earn” asset related product.
ASIC had claimed that the Finder Earn product was a bond. The Federal Court disagreed and dismissed ASIC’s proceedings on 14 March 2024.
ASIC has appealed this decision because it is concerned that the Finder Earn product was offered without proper license or authorization and therefore without the benefit of significant consumer protection.
The appeal will be heard by the Federal Court at a date to be determined.
Finder Wallet is a subsidiary of Finder.com comparison site and an AUSTRAC registered cryptocurrency exchange.
Finder Wallet offered Finder Earn from the end of February until November 10, 2022. Finder Earn customers deposited Australian dollars into their accounts, which were then converted into an Australian dollar “stablecoin” called TAUD and distributed to Finder Wallet . Customers received Australian dollars back into their accounts when they exited the Finder Earn product. Finder Wallet paid customers (in Australian dollars) an annual compound return of either 4.01% or, in some cases, 6.01% in exchange for Finder Wallet’s use of their funds.
After ASIC informed Finder Wallet of its concerns, Finder Earn ceased to be offered from 24 November 2022 and all funds were fully refunded to customers.