The Australian Securities and Investment Commission (ASIC) has imposed a significant penalty on fintech company Bobbob Ltd. for breaches related to cryptocurrency marketing.

Bobbob Ltd. has been directed to pay a fine of AUD 53,280, equivalent to approximately $33,300 in US dollars, marking one of the most substantial penalties for a cryptocurrency-related violation in Australia in recent months.

ASIC's investigation revealed that Bobbob, under the leadership of director Byron Goldberg, promoted a cryptocurrency-based investment product over an eight-month period starting in April 2022.

During this time, roughly 700 customers were enticed by this investment opportunity, collectively depositing about AUD 1.6 million into the fund.

According to the regulator, the marketing of the product failed to meet its established standards in multiple aspects. Certain statements made by Goldberg and Bobbob falsely conveyed that the product had received ASIC's approval.

Moreover, customers were led to believe that investing in the product operated similarly to having a bank account.

ASIC asserts that Bobbob did not adequately disclose the product's risk profile or its expected returns. As a result, customers had the mistaken impression that they could anticipate a 7.6% annual interest rate, a figure that did not align with the actual returns.