The Federal Court of Australia has ordered BPS Financial to pay $14 million in penalties following a protracted legal battle over the unlicensed promotion and operation of its "Qoin Wallet" crypto product.
The judgment, delivered yesterday, includes $12 million for misleading and deceptive representations and $2 million for carrying on a financial services business without an Australian Financial Services Licence between 2020 and 2023.
Justice Downes cited "objective recklessness" and the involvement of senior management as key factors in the significant fine, noting that the penalty serves as a stern deterrent for the broader digital asset industry.
In addition to the financial hit, BPS is now banned for 10 years from providing financial services without a valid licence and must publish adverse publicity notices on its platforms.
The court previously found that BPS falsely claimed the Qoin Wallet was officially registered and misled users regarding the ease of exchanging tokens for cash.
ASIC Chair Joe Longo emphasised that the outcome underscores the regulator's commitment to protecting investors from the risks of complex and volatile crypto products, stating that providers must operate with "clear and correct statements" or face severe consequences.