Australia’s High Court Rules in Favor of Block Earner Dismissing ASIC’s Appeal Over Crypto Products

In a landmark ruling for the crypto industry, Australia’s Federal Court has sided with fintech company Block Earner, rejecting an appeal from the Australian Securities and Investments Commission (ASIC) that sought to classify the firm’s discontinued crypto yield products as financial services requiring a license.

Block Earner’s Victory: Crypto Loans Are Not Financial Products

On April 22, 2025, Justices David O’Callaghan, Wendy Abraham, and Catherine Button ruled that Block Earner’s fixed-yield crypto product does not fall under the definitions of a financial product, managed investment scheme, or derivative under the Corporations Act.

The court emphasized that customers were lending crypto assets under fixed terms for a set return, without any pooling of funds or shared upside, which disqualifies the offering from being a managed investment scheme. Customers had no exposure to Block Earner’s broader business activities, further reinforcing the product’s classification as a straightforward loan agreement.

As a result, the court dismissed all legal proceedings against Block Earner and ordered ASIC to cover all legal costs, including those for the appeal.

ASIC “Considering” the Decision as Block Earner Sees Industry-Wide Implications

The case began in November 2022 when ASIC launched civil proceedings, alleging that Block Earner required an Australian Financial Services License (AFSL) to operate its suite of crypto-linked fixed-yield products.

In an earlier ruling from February 2024, a lower court had agreed with ASIC. However, a subsequent decision in June 2024 found Block Earner had acted in good faith and had sought legal advice before launching the product, meaning no financial penalties were imposed.

In response to the recent ruling, Block Earner’s Chief Commercial Officer, James Coombes, told Cointelegraph:

“This decision confirms what we’ve always believed—our crypto yield product was simply a loan agreement. There was no shared investment pool, no managed scheme. The fact that crypto was involved shouldn’t change that definition.”

He added that the ruling sets a critical precedent for fintech startups and crypto innovators in Australia:

“This case lays a foundation for other ambitious Australian businesses to build confidently and legally in the crypto space.”

ASIC stated in an April 22 press release that it is “considering the decision” but declined to provide further comment.

What’s Next for Block Earner?

Despite the legal win, Block Earner has no plans to relaunch its “Earner” product, which was discontinued when the legal battle began. However, the company remains committed to exploring crypto-backed lending solutions.

“Regulation is a complex challenge,” Coombes acknowledged. “We respect the work regulators are doing and hope to work together towards positive and clear guidelines for the future of finance.”