Australian court clears Finder in ASIC lawsuit

Australian Federal Court has dismissed a lawsuit filed by the Australian Securities & Investments Commission (ASIC) against Finder Wallet, a subsidiary of the fintech firm Finder.com.

The court ruled on Thursday that Finder’s Earn product, which offers yield to customers, was in compliance with financial laws and did not constitute a debenture.

ASIC had alleged that the product was an unlicensed financial service and required a disclosure document typically associated with a debenture, a type of debt instrument without collateral.

However, Justice Brigitte Markovic found that ASIC failed to establish that the Earn product was a debenture under the Corporations Act, leading to the dismissal of the case with costs.

The case, initiated by ASIC in December 2022, suggested that Finder Wallet should have held an Australian financial services license for its Earn product.

Finder Wallet countered the claim, stating that ASIC misunderstood the product’s operation and that it never guaranteed repayment of debts through a deposit.

Finder Wallet had already discontinued the Earn product in November 2022, citing rising interest rates as the reason for its reduced attractiveness to customers, and confirmed the return of all customer funds, according to a Cointelegraph report citing a Finder spokesperson.

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