BPS Financial Limited, the company behind the crypto token known as Qoin, has been fined over “serious and unlawful misconduct” by the Federal Court.
The fine has been set at $14 million.
Company Behind Qoin Crypto Token Fined
According to a report by ABC News, Justice Kylie Downes ordered BPS to pay the fine in pecuniary penalties.
The company is also prohibited from providing unlicensed financial services for a decade. It must likewise publish a notice that outlines the court’s decision. Said notice must be published online.
“From January 2020 until mid-2023 the defendant, BPS Financial Pty Ltd (BPS) engaged in serious and unlawful misconduct,” Justice Downes said in the court judgement.
Justice Downes added, “During the same period, BPS issued more than 96,000 Qoin Wallets and derived substantial revenues totalling over $42 million from the sale of Qoin Tokens.”
Qoin was initially dvertised as a digital currency that could be used to purchase goods and services from different businesses in Australia.
According to ABC News, 96,000 Qoin wallets have been issued by the company.
However, in 2021, a class action lawsuit was filed by Qoin users. It was also revealed at that time that many of the businesses listed on its website did not actually receive Qoin as payment.
ASIC Pursued Legal Action in 2022
Back in 2022, the Australian Securities and Investments Commission (ASIC) launched legal action against the company.
ASIC accused BPS of making misleading or downright false representations to approximately 80,000 people and businesses.
ASIC Chair Joe Longo reacted to the Federal Court’s decision in a statement, saying that “‘The size of these penalties underscores the seriousness of BPS Financial’s misconduct and is intended to send a strong message of deterrence to the digital asset industry.”
“The digital asset industry is well on notice that its products will continue to be a focus for ASIC. We want to encourage innovation and new services for consumers, but not at their expense,” he added.
