How Block Earner Is Different from the Crypto Lenders That Collapsed

The crypto industry has come a long way since the turbulent years of 2021–2023. During that time, several major centralised finance (CeFi) lenders — including Celsius, BlockFi, Voyager, Genesis and most famously FTX — collapsed, leaving users locked out of their funds and questioning what had just happened.

For example, Celsius used its own token (CEL) to prop up its balance sheet, backing customer deposits with an asset it controlled and manipulated. FTX, once the world’s second-largest exchanges, commingled customer funds with its hedge fund Alameda Research, and gambled them away — sparking one of the largest financial frauds in recent history.

These collapses exposed the fatal flaws of trusting platforms without real transparency, accountability, or regulatory oversight.

We don’t trade your funds. We don’t issue our own token. We don’t gamble with your assets. We're an AUSTRAC registered and regulated Australian business offering compliant crypto-powered financial tools, built by Australians, based in Australia.

Between 2021 and 2023, the crypto lending market underwent a brutal reset. At its peak in early 2022, CeFi lenders held over $34 billion in outstanding loans. The top three — Genesis, Celsius, and BlockFi — made up more than 75% of that market.

Then it all unraveled.

High-risk strategies, poor governance, and unsustainable business models triggered a wave of CeFi bankruptcies — wiping out over 80% of the market and billions in customer assets. The damage wasn’t just financial — it was criminal. On March 28, 2024, FTX founder Sam Bankman-Fried was sentenced to 25 years in prison, marking a historic reckoning for the industry’s most notorious collapse.

This era proved one thing: Trust must be earned — not assumed.

A key reason many CeFi lenders collapsed was rehypothecation — the reckless practice of lending out customer assets multiple times to chase high returns via speculation. When markets turned, they couldn’t meet withdrawal demands. Customers were left in the dark — and out of pocket.

Your crypto is a hard-earned asset — and you deserve full transparency and control. With Block Earner, your assets are protected by Fireblocks, a certified digital asset security provider (ISO and SOC 2 compliant). Ownership stays in your name, and industry leading security includes wallet address whitelisting and multi-signature protection.

With Block Earner you stay in control. You can monitor your Loan-to-Value Ratio (LVR) in real time, and repay or close your loan anytime — all from a simple, user-friendly mobile or desktop app. No lock-ins or early repayment fees. Just peace of mind.

Don’t believe us? Book in a call with our Aussie team here.

Many failed lenders operated offshore with unclear licensing and minimal oversight.

Block Earner is proudly based in Sydney, registered with AUSTRAC, and fully compliant with Australia’s AML/CTF obligations. We operate within Australia's regulatory framework — not around it and hold an ACL (Australian Credit Licence): Authorised representative 551024 of Mortgage Direct Pty Limited ACN 075 721 434 Australian Credit Licence 391876.*

​​Since launching our Crypto-Backed Loans in November 2023, we’ve been recognised for doing things the right way. Block Earner was awarded:

These awards highlight our commitment to building reliable, transparent, and forward-thinking financial tools — right here in Australia.

Legacy CeFi products often looked simple, but were underpinned by complex and risky strategies. Customers rarely had clarity on where funds and returns came from or what they were exposed to.

In many CeFi bankruptcies, customer assets were treated as company property. Legal battles are ongoing, and some users still haven’t recovered their funds.

At Block Earner, you retain full beneficial ownership of your assets — even when they’re used as loan security. Our legal and operational structures are designed to prioritise customer protection above all else.

Block Earner’s leadership team brings experience not just from crypto, but from traditional finance, payments, and regulatory compliance. We’re not here to chase hype cycles — we’re building long-term infrastructure that combines the innovation of DeFi with the resilience of traditional finance.

When borrowing against your crypto, local support matters — especially when timing is critical.

Whether you need help understanding your loan terms, have a question about repayments, or just want to speak to a real person, our Sydney-based team is here for you. You’ll never be stuck waiting days for an offshore support reply or automated chatbot.

We’re available during Australian business hours to provide clear, fast answers — and real support when it counts.

Book a call with our team and get tailored help, whether you're just exploring your options or ready to get started.

The collapse of crypto lending giants taught the industry some hard lessons — and at Block Earner we watched and listened. At Block Earner, we’re building something sustainable: crypto-backed financial services that are transparent, regulated, and built to last. Whether you're investing, borrowing, or just exploring the benefits of blockchain finance, we’re here to give you confidence in every step.

*Approved applicants only. Terms, conditions, fees and charges apply. Credit provided by Web3 Loans Pty Ltd ACN 668 516 952 and managed by Web3 Ventures Pty Ltd trading as Block Earner (ACN 655 090 869) authorised representative 551024 of Mortgage Direct Pty Limited ACN 075 721 434 Australian Credit Licence 391876.