Debenture law in Australia is fragmented thanks to a dreadful decision of the Full Court of the Federal Court on Thursday.
The absence of cynicism towards the fintech sector is notable in the judgment in the Finder Wallet debenture case and characterises a judiciary spectacularly out of touch.
Finder are the perfect foe.
ASIC cannot miss this chance to clarify debenture law in Australia in a case being closely watched by fintechs. ASIC must seek leave to appeal to the High Court.
As things stand, the Full Court of the Federal Court has upheld a primary judgement from March 2024 that Finder Wallet Pty Ltd’s crypto product Finder Earn was not a debenture.
This debenture decision was all backwards Banking Day wrote at the time.
Now the Full Court’s decision cannot stand.
The Full Court’s analysis did not even begin at the beginning.
Which is; mug punters would lend Finder money.
They expected to be repaid, with a return. This is the essence of a debenture.