The Australian Securities and Investment Commission (ASIC) has penalized Bobbob Pty for its representations about a crypto-asset-linked investment product. Bobbob has settled the claims by paying $53,280 to comply with ASIC’s “infringement notices.”
In a statement, ASIC explained that it was concerned that Bobbob made the following representations that had the potential to mislead consumers that the crypto-asset linked investment product:
- was approved or licensed by ASIC,
- was similar to, and therefore shared some attributes of, a bank account including the risk profile,
- was a safe and stable investment with minimal risk of customers incurring capital losses, and
- earned all customers an interest rate of 7.6% per annum from the time they invested.
ASIC states that during an eight-month period when the Savings Product was offered, approximately 700 customers deposited funds totaling around $1.6 million.
A court-enforceable undertaking from Bobbob and its sole director Byron Goldberg, regarding the representations was accepted by ASIC., including:
- Bobbob and Goldberg will each cease to be an authorized representative of the Australian Financial Services licensee, which authorised Bobbob to offer the product,
- Bobbob will not provide financial services to retail clients for 12 months, and
- Goldberg will himself, not provide, and not be involved in managing a business that provides, financial services to retail clients for 12 months.
ASIC said it will continue to take enforcement action regarding the allegedly misleading promotion of crypto-asset based products that could harm consumers.
