Block Earner’s fixed‑yield crypto product faced a decisive judgment as Australia’s High Court ruled unanimously on June 17 that the offering required a financial services licence under current law.
High Court Ruling Details
The seven‑judge panel concluded that the product, operated by Web3 Ventures Pty Ltd under the Block Earner brand, functioned as a financial investment facility and satisfied the legal definition of a derivative. Investor returns were found to be tied to fluctuations in underlying digital‑asset values and exchange‑rate movements, linking the scheme directly to the crypto market.
Subsequent Legal Steps
Following the High Court decision, the case will be sent back to the Full Federal Court, where ASIC’s appeal concerning penalties from earlier proceedings will be examined. ASIC had initiated civil penalty actions in November 2022, alleging that the Block Earner product was marketed without the mandatory licence and that investors missed out on protections afforded by Australia’s financial services framework.
Background of the Dispute
The Federal Court had previously, in February 2024, declared that Block Earner operated an unregistered managed investment scheme. In June 2024, that court opted not to impose immediate sanctions, a decision now superseded by the High Court’s 7‑0 ruling, which reinforces regulatory expectations for crypto‑related offerings and underscores the need for compliance among blockchain enterprises.