The Federal Court of Australia has dismissed a lawsuit filed by the Australian Securities and Investments Commission (ASIC) against Finder Wallet, a sister company of Australian fintech firm Finder.com. The lawsuit claimed that Finder Wallet’s yield-bearing product, Finder Earn, was in violation of financial laws. However, Justice Brigitte Markovic ruled that ASIC had not proven that Finder Earn was a debenture under the Corporations Act. As a result, the court dismissed the case with costs. ASIC had sued Finder Wallet in December 2022, alleging that the Finder Earn product was unlicensed and required a financial services license. Finder had discontinued the product a month earlier, citing strategic business decisions and increased interest rates, rather than regulatory concerns. A Finder spokesperson called the court’s ruling a “landmark win” and stated that there are currently no plans to relaunch the Earn product. Finder’s Global CEO and co-founder, Frank Restuccia, expressed satisfaction with the court’s decision, emphasizing that Finder had complied with its regulatory obligations and engaged openly with ASIC throughout the process. ASIC’s executive director of enforcement and compliance, Tim Mullaly, stated that the regulator would carefully consider the judgment and has the option to lodge an appeal within 28 days.
Court determines Finder's Earn product from Australian crypto firm to be compliant