Australia's Markets Watchdog Sues Fintech Company Block Earner

Australia's markets regulator is suing Block Earner, alleging that the fintech company provided unlicensed financial services.

The Australian Securities and Investments Commission (ASIC) said Block Earner offered a range of fixed-yield earning products based on crypto assets, according to a statement from the commission Wednesday. The products should have been licensed because they are a managed investment scheme, "leaving consumers without important protections," it said.

"Although we understand the backdrop, this is a disappointing outcome," said Block Earner co-founder and CEO Charlie Karaboga in a statement to Business News Australia. Karaboga said since inception, customers' funds have been protected against events like the recent collapse of crypto exchange FTX and that a lack of regulatory clarity "creates friction between regulators and innovators."