The Australian Securities and Investments Commission (ASIC) has successfully defended the main liability and sanction outcomes against iSignthis Ltd, now Southern Cross Payments Ltd, and its former director and chief executive officer, Nickolas John Karantzis. The Full Federal Court largely dismissed their appeals, upholding the company’s AUD 10 million disclosure penalty and Karantzis’ AUD 1 million penalty and disqualification from managing corporations for six years. The sanctions were imposed in August 2025. Karantzis was penalized for breaching his director’s duties and failing to ensure information given to the Australian Securities Exchange was not false or misleading. In upholding the company’s penalty, the court emphasized that the relevant harm included damage to the integrity and proper operation of the market, rather than being confined to demonstrated financial loss suffered by an identified shareholder. A limited part of Karantzis’ appeal succeeded, requiring an amendment to one declaration in the liability judgment. The correction did not alter any substantive liability or penalty outcome. Both appellants were ordered to pay ASIC’s appeal costs.
ASIC defends iSignthis disclosure penalty of AUD 10 million and director sanctions on appeal
The Australian Securities and Investments Commission successfully defended the principal outcomes challenged by iSignthis Ltd, now Southern Cross Payments Ltd, and its former director and chief executive officer, Nickolas John Karantzis. The Full Federal Court upheld the company’s AUD 10 million disclosure penalty, Karantzis’ AUD 1 million penalty and his disqualification from managing corporations for six years. A limited amendment to one declaration left substantive liability and penalties unchanged, and both appellants must pay the regulator’s appeal costs.