An Australian financial adviser has been banned from practicing for a decade after regulators found he advised clients to invest in a fraudulent cryptocurrency scheme. The Australian Securities and Investments Commission (ASIC) issued the ban following an investigation into his involvement with the now-defunct scam.
The adviser, whose name was not disclosed, directed clients to transfer funds into a crypto platform that promised high returns but ultimately collapsed. ASIC determined that the adviser failed to perform due diligence and acted without proper regard for his clients’ best interests.
According to the regulator, several clients lost significant amounts of money, and the adviser profited through undisclosed commissions. The case underscores the growing concern among financial authorities about advisers promoting unregulated digital asset investments.
ASIC’s action is part of a broader crackdown on misconduct in the crypto space, particularly where licensed professionals are found to be enabling scams. The regulator warned that advisers who disregard compliance standards will face strong penalties.
