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ARTICLE · 15 JUNE 2024

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Crypto platform relieved from liability following contraventions of the Corporations Act

Holding Redlich
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Relying on competent legal advice is a significant, but not determinative, factor in the Court's assessment.

AustraliaLitigation, Mediation & Arbitration
Chris Brodrick
Chris Brodrick
Alana Giles
Alana Giles
Jack Trainor
Jack Trainor
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A recent Federal Court decision has cast light on when a person found to have contravened a civil penalty provision of the Corporations Act 2001 (Act) may be relieved from liability. The decision demonstrates that the Court will give serious consideration to the fact that the person sought and relied on competent legal advice before engaging in the conduct that was ultimately found to contravene the Act. This is particularly the case where the person is operating in an area of legal uncertainty and complexity.

Contravention judgment

In February 2024, Justice Jackman delivered judgment in ASIC v Web3 Ventures Pty Ltd [2024] FCA 64 (Contravention Judgment). Jackman J found that Block Earner, the operator of an online platform offering various cryptocurrency-related products to its customers, had contravened the Act by:

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This publication does not deal with every important topic or change in law and is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader's specific circumstances. If you have found this publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances please contact one of the named individuals listed.

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