ASIC has successfully defended the key liability, penalty and disqualification outcomes challenged by iSignthis Ltd (iSignthis), now known as Southern Cross Payments Ltd, and its former director and chief executive officer Nickolas John Karantzis.
The Full Federal Court yesterday largely dismissed the appellants’ appeals and upheld orders made by Justice McEvoy that iSignthis must pay a $10 million penalty for breaching disclosure laws and that Mr Karantzis be disqualified from managing corporations for six years and pay a $1 million penalty (24-132MR, 25-158MR).
The Full Court allowed the appeal on a limited aspect concerning the terms of one declaration made against Mr Karantzis during the liability judgment and ordered that the declaration be amended.
Justices Stewart, Cheeseman and Neskovcin held that the correction to the declaration ‘could have been raised before the primary judge, and its correction does not alter any substantive liability or penalty outcome.’
In upholding iSignthis’ multimillion-dollar penalty, the Full Court said, ‘The relevant harm included harm to the integrity and proper operation of the market and was not confined to demonstrated financial loss suffered by an identified shareholder.’
ASIC Chair Sarah Court said, ‘Investors are entitled to trust what listed companies tell the market. There is no room for spin.
‘Accurate and timely disclosure goes to the heart of market integrity. When that obligation is not met, it can undermine investors’ ability to make informed decisions and erode confidence in our markets.
‘Today’s decision reinforces that companies and directors will be held to account when they fail to meet those obligations.’
The Full Court ordered iSignthis and Mr Karantzis to pay ASIC’s appeal costs.
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Background
On 7 December 2020, ASIC commenced civil penalty proceedings in the Federal Court against iSignthis Ltd and its managing director and chief executive officer Nickolas John Karantzis (20-312MR).
On 11 May 2022 (ASX:SP1), iSignthis Limited (ASX:ISX) changed its name to Southern Cross Payments Ltd (ASX:SP1).
On 4 November 2022, Southern Cross Payments Ltd was delisted from the ASX.
On 21 June 2024, the Federal Court found iSignthis Ltd engaged in a number of contraventions of the law between 2018 and 2020 (24-132MR).
On 8 August 2025, the Federal Court ordered iSignthis to pay a $10 million penalty for breaching disclosure laws. The Court also ordered Mr Karantzis be disqualified from managing corporations for six years and penalised $1 million for breaching his director’s duties and failing to ensure information given to the ASX was not false or misleading.
On 5 September 2025, iSignthis and Mr Karantzis lodged an appeal over the Federal Court’s decisions on liability and penalty.