Australian federal court overturns ruling against crypto lender Block Earner, orders securities agency to cover legal fees

A three-year-long legal battle between Sydney-based fintech startup Block Earner and the Australian Securities and Investments Commission (ASIC) over alleged unlicensed service offerings ended in victory for the crypto lender, potentially setting a precedent for future cases.Following a multi-year legal dispute, the Federal Court of Australia has ruled that Block Earner's crypto-backed "Earner" product did not violate local financial regulations, granting the company's appeal to dismiss charges brought by the securities watchdog. The court concluded that Block Earner's blockchain-based lending product operated as a fixed-term loan agreement rather than a financial investment that required regulatory licensing.ASIC originally filed its complaint in November 2022, claiming Block Earner had breached Australian financial services laws. Following the initial lawsuit, Block Earner voluntarily ceased offering its Earner product. Judge Ian McNeil Jackman, brother to actor Hugh Jackman, ruled in favor of the regulator in March 2024. ASIC Deputy Chair Sarah Court remarked that the decision clarified oversight for crypto-backed products.Block Earner appealed the judgment, eventually securing a win over the ASIC in April 2025. The latest court ruling on the matter, issued on Tuesday, not only dismissed all charges but also ordered ASIC to cover all legal costs associated with both the original trial and the appeal. Despite this legal victory, Block Earner reportedly does not plan to relaunch the Earner product in Australia's market.Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.