ASIC Penalizes Bobbob Pty for Misleading Representations of Crypto-Asset-Linked Investment Product
The Australian Securities and Investment Commission (ASIC) has taken action against Bobbob Pty for misleading representations of a crypto-asset-linked investment product. As a result, Bobbob has settled the claims by paying a fine of $53,280 to comply with ASIC’s infringement notices.
ASIC expressed concerns over the representations made by Bobbob to consumers regarding the crypto-asset-linked investment product. These representations included claims that the product was approved or licensed by ASIC, shared attributes of a bank account including the risk profile, was a safe and stable investment with minimal risk of capital losses, and offered an interest rate of 7.6% per annum.
According to ASIC, approximately 700 customers deposited funds of around $1.6 million during the eight-month period when the Savings Product was offered. The regulatory body deemed these representations as potentially misleading to consumers.
In response, Bobbob and its sole director, Byron Goldberg, have entered into a court-enforceable undertaking with ASIC. The undertaking includes the following measures:
– Both Bobbob and Goldberg will cease to be authorized representatives of the Australian Financial Services licensee that authorized Bobbob to offer the product.
– Bobbob will be prohibited from providing financial services to retail clients for a period of 12 months.
– Goldberg will be prohibited from providing financial services to retail clients and managing a business that provides financial services to retail clients for a period of 12 months.
ASIC emphasized its commitment to taking enforcement actions against misleading promotions of crypto-asset-based products in order to protect consumers from potential harm.
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