Following an action by the Australian Securities and Investments Commission (ASIC), fintech company Bobbob Pty Ltd has paid $53,280 to comply with infringement notices regarding representations it made about a crypto-asset linked investment product.

ASIC was concerned that Bobbob made the following representations that had the potential to mislead consumers that the crypto-asset linked investment product:

• was approved or licensed by ASIC,
• was similar to, and therefore shared some attributes of, a bank account including the risk profile,
• was a safe and stable investment with minimal risk of customers incurring capital losses, and
• earned all customers an interest rate of 7.6% per annum from the time they invested.

During the eight-month period the Savings Product was offered, approximately 700 customers deposited funds totalling around $1.6 million.

ASIC has also accepted a court enforceable undertaking from Bobbob and its sole director Mr Byron Goldberg regarding the representations. The undertakings include that:

• Bobbob and Mr Goldberg will each cease to be an authorised representative of the Australian Financial Services licensee which authorised Bobbob to offer the product,
• Bobbob will not provide financial services to retail clients for 12 months, and
• Mr Goldberg will himself, not provide, and not be involved in managing a business that provides, financial services to retail clients for 12 months.

Bobbob paid the infringement notices on 20 September 2023. Payment of an infringement notice is not an admission of guilt or liability.

From 1 April 2022 to 1 December 2022, Bobbob offered the crypto-asset based investment product to Australian consumers. Bobbob has returned all customers’ funds (with interest) since it ceased offering the product.