Former iSignthis CEO Loses Appeal Against Six-Year Australian Director Ban
An Australian appeal court has largely upheld a six-year ban from managing corporations against Nickolas John Karantzis, the former chief executive of payments firm iSignthis, while keeping A$11 million in penalties tied to undisclosed one-off revenue and Visa's 2020 exit.
The Full Court of the Federal Court of Australia also kept the A$11 million in penalties against Karantzis and the company. It amended the wording of one declaration against him and ordered both appellants to pay ASIC's costs. The ruling comes as Karantzis now runs a regulated EU business through Xryma, the Cyprus-based e-money company formerly called ISX Financial EU.
ASIC filed the case in December 2020, when Karantzis told FinanceMagnates.com that its claim contained "factual issues" he would contest in court. The group reported FY25 revenue of EUR 53.4 million, a figure that includes other income. Its Paris admission was a technical listing of 110 million existing shares, with no new capital raised.
When the first-instance penalties were imposed in August 2025, ISX's board said it had notified the competent authorities, as a licensed e-money institution must, and that the proceedings were civil. The board said it "maintains full confidence in Mr Karantzis."
One-Off Revenue and Lost Visa Relationship
The findings cover two sets of market filings, two years apart. A trial judge ruled in June 2024 that iSignthis told investors on August 3, 2018, that less than 15% of its quarterly revenue came from one-off or set-up fees. That quarter carried about A$3 million of one-off revenue and about A$2.85 million of one-off costs that went undisclosed.
From May 12, 2020, iSignthis also failed to tell investors that Visa had ended its relationship with it, or why. Karantzis was found to have breached his duties as a director, including by failing to take reasonable steps to make sure what he told the Australian Securities Exchange (ASX) about the Visa termination was accurate.
There is no room for spin.
Market Impact and Regulatory Trend
By the time ASIC sued, iSignthis was already in court with the ASX, which had suspended its shares in October 2019. The company had raised its damages claim against the exchange above A$264 million. It was renamed Southern Cross Payments in May 2022 and delisted that November.
The appeal court said the harm from the conduct reached the integrity of the market and was not limited to losses suffered by identified shareholders. The ruling comes in a period of heavier penalties from the regulator. ASIC secured A$349.8 million in civil penalties between July and December 2025, its highest six-month total.
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