Australian Securities and Investments Commission v Web3 Ventures Pty Ltd (Penalty) [2024] FCA 578

FEDERAL COURT OF AUSTRALIA

Australian Securities and Investments Commission v Web3 Ventures Pty Ltd (Penalty) [2024] FCA 578 File number: NSD 1007 of 2022

Judgment of: JACKMAN J

Date of judgment: 4 June 2024

Catchwords: CORPORATIONS – civil penalty – whether to relieve defendant from liability – where defendant contravened Corporations Act ss 911A and 601ED – where contraventions involved investing customer funds in cryptocurrency – where defendant perceived there to be legal uncertainty, obtained competent legal advice, and genuinely concluded that there was no identified risk of breaching the law – defendant relieved from liability COSTS – effect of misleading media release by regulator

Legislation: Australian Securities and Investments Commission Act 2001 (Cth) s 19 Corporations Act 2001 (Cth) ss 601ED, 911A, 1317E, 1317G, 1317S Federal Court of Australia Act 1976 (Cth) s 37N

Cases cited: Australasian Meat Industry Employees' Union v Australia Meat Holdings Pty Ltd [1998] FCA 664; (1998) 82 IR 76 Australian Building and Construction Commission v Pattinson [2022] HCA 13; (2022) 274 CLR 450 Australian Building and Construction Commissioner v Construction, Forestry, Mining and Energy Union [2017] FCAFC 113; (2017) 254 FCR 68 Australian Building and Construction Commissioner v Construction, Forestry, Mining and Energy Union [2018] HCA 3; (2018) 262 CLR 157 Australian Competition and Consumer Commission v Lactalis Australia Pty Ltd (No 2) [2023] FCA 839 Australian Competition and Consumer Commission v TPG Internet Pty Ltd [2013] HCA 54; (2013) 250 CLR 640 Australian Securities and Investments Commission v Allianz Australia Insurance Ltd [2021] FCA 1062; (2021) 156 ACSR 638 Australian Securities and Investments Commission v Citrofresh International Ltd (No 3) [2010] FCA 292; (2010) 268 ALR 303 Australian Securities and Investments Commission v GetSwift Limited (Penalty Hearing) [2023] FCA 100; (2023) 167 ACSR 178 Australian Securities and Investments Commission v Healey (No 2) [2011] FCA 1003; (2011) 196 FCR 430 Australian Securities and Investments Commission v Plymin (No 2) [2003] VSC 230; (2003) 21 ACLC 1237 Australian Securities and Investments Commission v Rio Tinto Ltd (No 2) [2022] FCA 184 Australian Securities and Investments Commission v Vines [2005] NSWSC 1349; (2005) 65 NSWLR 281 Australian Securities and Investments Commission v Web3 Ventures Pty Ltd [2024] FCA 64 Australian Securities and Investments Commission v Web3 Ventures Pty Ltd (No 2) [2024] FCA 197 Cameron v R [2002] HCA 6; (2002) 209 CLR 339 Cousins v Merringtons Pty Ltd (No 2) [2008] VSC 340 Dunlop v Woollahra Municipal Council [1982] AC 158 Eva v Southern Motors Box Hill Pty Ltd (1977) 15 ALR 428 Flight Centre Limited v Australian Competition and Consumer Commission (No 2) [2018] FCAFC 53; (2018) 260 FCR 68 Giannarelli v Wraith (No 2) (1991) 171 CLR 592 Gillfillan v Australian Securities and Investments Commission [2012] NSWCA 370; (2012) 92 ACSR 460 Hall v Poolman [2007] NSWSC 1330; (2007) 65 ACSR 123 Ingot Capital Investments Pty Ltd v Macquarie Equity Capital Markets (No 6) [2007] NSWSC 124; (2007) 63 ACSR 1 Mayfair Wealth Partners Pty Ltd v Australian Securities and Investments Commission [2022] FCAFC 170; (2022) 295 FCR 106 New Image Photographics Pty Ltd v Fair Work Ombudsman [2013] FCA 1385 Re One.Tel Ltd (in liq); Australian Securities and Investments Commission v Rich [2003] NSWSC 186; (2003) 44 ACSR 682 Siganto v R [1998] HCA 74; (1998) 194 CLR 656 Singtel Optus Pty Ltd v Australian Competition and Consumer Commission [2012] FCAFC 20; (2012) 287 ALR 249 Times Travel (UK) Ltd v Pakistan International Airlines Corporation [2021] UKSC 40; [2023] AC 101 Trilogy Funds Management Ltd v Sullivan (No 2) [2015] FCA 1452; (2015) 331 ALR 185 Universal Music Australia Pty Ltd v Australian Competition and Consumer Commission [2003] FCAFC 193; (2003) 131 FCR 529 Visy Paper Pty Ltd v Australian Competition and Consumer Commission [2005] FCAFC 236; (2005) 224 ALR 390 Australian Law Reform Commission, "Confronting Complexity: Reforming Corporations and Financial Services Legislation" (Report No 141, November 2023) Finnis, John, Natural Law and Natural Rights (Oxford University Press, 1980) Fuller, Lon L, The Morality of Law (Yale University Press, rev ed, 1969) Heydon, JD, Cross on Evidence (14th Australian edition, 2024)