ASIC Sues Finder Wallet For Meaningful Unlicensed Conduct
The Australian Securities and Investment Commission (ASIC) has filed a lawsuit against Finder Wallet, a subsidiary of comparison website Finder.com, over a cryptocurrency-linked yield product.
On December 15, the ASIC filed a court case against Finder Wallet for suspected unauthorized behavior and inadequate risk disclosure.
Finder Earn, which was available between February and November 10 of this year, involves turning customer payments in Australian dollars into TAUD, an Australian dollar-backed stablecoin that Finder subsequently utilized as operating capital. The firm provided deposit interest rates of 4.01% and 6.01%.
According to ASIC, the product was a debenture, which is a financial instrument that is not secured by collateral and needs an Australian Financial Services (AFS) license.
It argued that Finder Earn exposed consumers to possible injury since they may have been sold a product not fit for them.
Following ASIC’s notification, Finder Wallet discontinued selling Finder Earn on November 24, 2022, and all payments were refunded in full to consumers.
Following the action against Block Earner in November, it is the second local supplier of a crypto income product to be pursued by the government. ASIC filed a lawsuit against Block Earner for marketing three crypto-backed fixed-yield earning products without an AFS license.
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