ASIC Penalizes Bobbob For Crypto Investment Product

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.

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