Even though the Federal Court rejected ASIC’s lawsuit against Finder Earn, a cryptocurrency product from Finder Wallet, the Australian securities agency is taking the matter to appeal.
In a statement released on Wednesday, the regulator announced that it had appealed the Federal Court’s decision to dismiss its proceedings against Finder Wallet Pty Ltd. The defendant was accused of offering unlicensed financial services, failing to comply with product disclosure requirements, and developing and distributing Finder Earn, a product related to crypto assets, without the necessary licenses.
Finder Wallet was subject to a lawsuit filed by ASIC in December 2022. After then, the authority said that Finder’s Earn was a debenture that lacked the proper licensing. After that, Finder Wallet took ASIC to federal court, claiming that they were mistaken about Earn’s business practices.
After reviewing Finder Wallet’s Earn product, the court upheld its status as a legitimate financial service in March. Essentially, the court found against ASIC’s contention that Earn was a debenture and gave Finder the cost award.
Because of its concerns that Finder Earn did not have the necessary licensing and consumer protections, ASIC is now appealing the judgement. The appeal’s hearing date before the Federal Court is still up in the air.
In late February to November 10, 2022, the Earn product was available via Finder Wallet, a division of the comparison website Finder.com. Users could fund their Finder Wallets with Australian dollars using this product, which then transformed those dollars into a stablecoin (TAUD) tied to the Australian dollar.
Finder Earn was deactivated on November 24, 2022, and all client funds were reimbursed in full in response to ASIC’s concerns.
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