ASIC Wins High Court Fight Over Block Earner Yield Product

Highlights:

• Block Earner has lost a unanimous High Court appeal over its former fixed-yield crypto product.
• ASIC’s win sends the penalty issue back to the Full Federal Court.
• The ruling says existing financial product laws can cover crypto yield offerings.

Australia’s High Court has given ASIC a clear legal win in its licensing dispute with Block Earner. On June 17, the court ruled that the former Earner crypto yield product needed an Australian financial services license. The unanimous 7-0 judgment arrived on June 17 and overturned a decision made by the Full Federal Court last year.

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Block Earner Case Tests Existing Crypto Rules

The dispute focused on Earner, a fixed-yield digital asset product from Web3 Ventures Pty Ltd. The company offered it between March and November 2022. Through Earner, users placed selected digital assets and received fixed returns. However, ASIC argued that the product fell within Australia’s financial services laws.

The High Court agreed with ASIC on two grounds. It found that Earner acted as a facility for financial investment. It also found that the Earner qualified as a derivative. Investor returns are moved by reference to digital asset values and exchange rates.

Therefore, the court looked at the substance of the arrangement. It did not rely on the product’s name or marketing. ASIC said investors used the product without protections linked to licensed financial services. The regulator said the decision confirmed the reach of broad financial product definitions.

澳大利亚高等法院以 7:0 一致裁定，支持澳大利亚证券和投资委员会（ASIC）就 Block Earner 旧固定收益数字资产产品 Earner 提起的上诉，认定该产品根据现行法律需持有澳大利亚金融服务牌照。法院认为，Web3 Ventures Pty Ltd（交易名 Block…

— 吴说区块链 (@wublockchain12) June 17, 2026

Court Decision Reverses Earlier Appeal Outcome

The case had gone through a series of courts before Wednesday’s decision. In February 2024, the Federal Court found that Earner was an unregistered managed investment scheme. The court later, in June, relieved the company from financial penalties. Soon afterward, ASIC appealed that penalty outcome.

The company then filed a cross-appeal in July. In April last year, the Full Federal Court allowed that cross-appeal and dismissed ASIC’s challenge. However, ASIC took the case to the High Court after securing special leave. After arguments in March this year, the High Court restored ASIC’s central licensing position.

ASIC Chair Sarah Court welcomed the outcome. She said Australia’s financial product definition remains broad and technology-neutral. Also, she said new and emerging products can fall under existing legislation. This view now shapes the next stage of the penalty dispute.

Court Battle Continues as Firm Changes Course

Although the ruling settled the licensing question, it did not close the case. The matter now returns to the Full Federal Court. Judges will review ASIC’s appeal against the earlier penalty judgment. This step will decide whether the company faces financial penalties over Earner.

Meanwhile, the company has moved away from yield products. It voluntarily closed Earner in November 2022 and shifted toward lending services. In May this year, it received an Australian Credit Licence. The company described the license as part of its regulated crypto-backed lending plans.

Three things that just changed Australian crypto⁰🇦🇺

01 · Block Earner secures ACL
Block Earner has been granted an Australian Credit Licence by ASIC, making us the first crypto platform in Australia to offer credit products under our own ACL.

02 · The Budget is coming for your… pic.twitter.com/T3ScMDrlV3

— Block Earner (@blockearner) May 26, 2026

The firm also launched Bitcoin-backed home loans for Australian borrowers in July last year. The product aims to let customers use Bitcoin as collateral for property financing. This structure would let borrowers avoid selling their holdings.

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