The Australian Federal Court has ruled in favor of crypto company Block Earner, freeing it from paying a fine and dismissing allegations of illegal activities by the Australian Securities and Investments Commission (ASIC).

In November 2022, ASIC began legal proceedings against Block Earner, alleging that the company was offering the Block Earner, Earner and DeFi Access products without a financial services authorization. The department's website states that Block Earner is the trading name of the Web3 Ventures Pty Ltd exchange, registered with the Australian Financial Transactions Accounting and Analysis Center (AUSTRAC). However, the company does not have an ASIC license.

Judge Ian Jackman found that between March and November 2022, Block Earner provided unlicensed financial services and promoted unregistered investment schemes linked to Earner's product. However, the court acknowledged that Block Earner management had considered obtaining a license when distributing Earner's product.

The Australian court also took into account the company's internal research and its consultation with investment professionals, leading Block Earner to conclude that not all products required a license. ASIC asked the court to fine Block Earner in the amount of 250,000 Australian dollars (about $234,000), but the judge refused to comply with the regulator’s request.

Block Earner CEO Charlie Karaboga said the company received legal advice before launching the software. Karaboga emphasized that the company strives to conduct business within the law and in accordance with regulatory standards.

ASIC recently lost a lawsuit against another cryptocurrency company, Finder. The court ruled that Finder Earn did not violate local laws.