Fintech company Bobbob has paid $53,280 to comply with infringement notices regarding representations it made about a crypto-asset-linked investment product.
ASIC announced the company paid the amount following action from the corporate regulator but was not required to admit wrongdoing.
The regulator was worried about misleading representations, including Bobbob’s claims that the product was ASIC-approved, similar to a bank account, safe, and offered a fixed 7.6 per cent annual interest rate.
Bobbob offered the product from 1 April 2022 and 1 December 2022, and approximately 700 customers invested $1.6 million during this time. The company has since returned all customer funds with interest.
As part of the settlement, Bobbob and its director Byron Goldberg agreed to cease being authorised representatives of the financial services licensee and not provide services to retail clients for 12 months.