ASIC confirmed to ILN that following an investigation Jonathan Moylan had been charged with one breach of section 1041E of the Corporations Act, covering the making of false or misleading statements.

Anti-coal group Lock the Gate Alliance said Moylan faced the maximum penalty of 10 years in jail and a fine of up to $495,000.

Lock the Gate president Drew Hutton told ILN that he believed the charges laid against Moylan were extreme.

"Here is a young man, Jonathan is only 24, who faces up to a decade in prison for something that he did in the best interests of the community," Hutton said.

“He was simply drawing attention to a coal mine that poses a massive environmental risk.”

The anti-coal activist caused havoc when he sent the fake press release on January 7, which stated the ANZ Bank had withdrawn a $1.2 billion loan facility to Whitehaven.

Moylan represents green groups opposed to the Whitehaven’s 10.8 million tonne per annum Maules Creek development near state forests and agricultural land in New South Wales.

The bogus release falsely stated that ANZ Bank had withdrawn the loan because of “volatility in the global coal market, expected cost blow-outs and ANZ’s corporate responsibility policy”

“We want our customers to be assured that we will not be investing in coal projects that cause significant dislocation of farmers, unacceptable damage to the environment, or social conflict," the phony statement said.

The hoax suggested the bank would consider withdrawing loans to other coal and coal seam gas projects as part of its status as a signatory to the Equator Principles, which is a voluntary code of environmentally and socially aware lending and investing.

ANZ quickly issued a statement condemning the bogus announcement and affirming its support for Whitehaven.

The company’s shares recovered after being placed in a trading halt but the effectiveness of the Corporations Act in preventing misleading statements was put under tough scrutiny.

The incident was the third time in six months that trading on the Australian Securities Exchange had been influenced by a hoax.

Hutton called the charge a “double standard”, saying if Moylan was to be held accountable, Whitehaven too should face action for its environmental failings.

"We are asking ASIC to reconsider their decision and withdraw the prosecution – the penalty is clearly disproportionate to the offence and Mr Moylan has apologised to anyone affected by his actions,” he said.

“I have met Moylan on a number of occasions and he is a well-liked, gentle man with good intentions.”

Moylan is scheduled to appear in court later this month.