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ASIC Fines Marketer of Crypto Investment Fund Amid Escalating Crackdown

Press Releases Crypto News BeInCrypto ASIC Fines Marketer of Crypto Investment Fund Amid Escalating Crackdown

The Australian Securities and Investments Commission (ASIC) expects cryptocurrency marketing campaigns to say what they mean and mean what they say. The regulator has come down hard on a fintech firm for certain representations about its crypto offerings.

Bobbob Ltd. must pay a penalty of AU$53,280, or about $33,300 in US dollars, one of the heftiest fines for a crypto-related violation in Australia in months.

ASIC Cracks Down on Crypto Fraud

ASIC’s announcement of the penalty charges that Bobbob, under its sole director, Byron Goldberg, marketed a crypto-based investment product for eight months beginning in April 2022.

Over this period, some 700 customers head the siren song of this investment opportunity. And, in total, they deposited about AU$1.6 million into the fund.

In ASIC’s view, the marketing of the product fell short of its standards in a number of ways. Certain representations from Goldberg and Bobbob fostered the impression that the product had ASIC approval. They also led customers to believe that an investment in the product worked basically like a bank account.

In addition, Bobbob was not forthcoming about either the product’s risk profile or its probable returns, ASIC claims. Hence customers thought they could expect 7.6% interest per year. A figure that in no way reflected the actual returns.

Besides the fine, ASIC has decreed that neither Goldberg nor Bobbob may offer financial services to retail customers for one year.

ASIC Signals a More Aggressive Stance on Fraud

The news of the penalty and temporary injunction against Bobbob and Goldberg will not surprise anyone who has followed ASIC’s recent public statements.

On August 28, the regulator issued a harsh warning about its aim to crack down on “digitally enabled misconduct.”<

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Author: Michael Washburn

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