Australian Court Finds iSignthis Guilty of Misleading Investors

The Federal Court of Australia has been made aware that Southern Cross Payment firm has led investors astray as regards its interest.

Also, they have yet to make open the closing of their main visa deal. The organization was said to have misled the investors by not making it clear that roughly $2.85 million had been incurred in the second quarter of 2018.

According to the findings, less than 15% of the company’s total revenue in 2018 was from a set-up fee. Furthermore, the firm did not clarify that it realized roughly 3 million dollars in non-recurring interest.

Court Dismisses Allegations Against Nicholas Karantzis Over Visa Transaction Disclosure

In addition to this, Sarah Court, the Deputy Chairperson of ASIC, stated that the company did not reveal in May 2020 that its transaction with Visa was aborted. The shareholders of Isignthis and the entire market had the right to get concise and accurate details about the company.

Failure for the disclosure was blamed on the company’s former managing director and Chief Executive Officer, Nicholas Karantzis. Nonetheless, the law Court canceled the allegations, stating further that the regulators did not initiate it that Karantzis broke his responsibilities and failed to act ethically as the director.

The judge affirmed that ASIC cannot have the final say regarding Mr. Karantzis’ activities and that the watchdog could not prove that he failed his duties in not acting morally in the firm’s interest.

ISignthis Specializes in Identity Verification And Transactional Payment Services

ISignthis gave identified verifications and bank transactional payment services. The technology company handling the payment had top Australian sponsors backing, including Regal Funds Management and LHC Capitals.

However, it was suspended from trading with ASX in 2019, while the market operators were sued. The company’s name was later changed to Southern Cross Payments and was removed from the ASX in November.

Karantzis now operates as the present Chief Executive Officer of Cyprus Incorporated, cutting off his ties with Australia-based Southern Cross Payments.

iSignthis is formerly known as Southern Cross Payment, a technology firm in Australia. It was co-founded by Nuno Sousa and John Karantzis in 2013. The company focuses on making available payment services and identity verification aimed at providing secure financial transactions and solutions for customers’ complaints.