Speaking to media via Zoom, Cricket Australia chair Richard Freudenstein and CEO Nick Hockley faced up to questions, and Freudenstein admitted that "Cricket Australia would not make the same decisions today".
"I acknowledge the decision clearly sent the wrong message to the sport, to the community and to Tim, that this sort of behaviour is acceptable or without serious consequence," Freudenstein said.
"The role of the Australian cricket captain must be held to the highest standards.
"Since 2018, the organisation has implemented more education for players, including training in relation to acceptable behaviour when engaging social media, including the exchange of sexually explicit texts. What is clear is there are lessons to be learned and we as an organisation have more to do and will do more in this area."
When pressed further about whether the 2018 decision to elevate Paine to the captaincy would have been made now, Freudenstein reiterated the board would have come to a different decision.
"I can't talk about the 2018 decision, I wasn't there, I'm not sure of all the circumstances that took place," Freudenstein said.
"But I am saying based on the facts as they are today the board of Cricket Australia today would not have made that decision."
Both Freudenstein and Hockley admitted they had become aware of the issue when they took on their roles.
Freudenstein, who joined the board two years ago, said he had "a very brief conversation where I was informed there had been an incident with Tim a few year earlier, which had been subject to a full integrity review and no finding of misconduct".
But he admitted he believed it had been "put to bed" and hadn't been readdressed in the previous few years.
Hockley said he was also made aware of the accusation but that the matter had been closed. He said he had only been fully briefed on the issue after reading the report into the investigation on Wednesday evening last week after receiving the media inquiry.
Freudenstein also admitted that Paine had made the decision to stand down and that Cricket Australia supported his decision.
Having been found not guilty of breaching the code of conduct, Freudenstein added that he believe the Code of Conduct "is appropriate" and said "a lot of things have changed since that time".
This includes education around texting, which has been in place since the 2018-19 season, and annual integrity training.
Freudenstein also paid tribute to Paine's behaviour since becoming Australian captain.
"Tim admits he made a mistake in 2017," Freudenstein said. "I think his behaviour since then has been incredible and he's done a great job as a leader and ambassador for cricket. I think the culture of the team is very strong. What is happening in Australian cricket at a Test level, at a professional level and a community level, there is so much good work going on across Australian cricket and I think that will continue."
Freudenstein refused to be drawn into whether Cricket Australia would end Paine's captaincy tenure if he had not stood down himself, while he also refused to be drawn into any future captaincy speculation.
Paine has also admitted he would still be available for selection for the upcoming Ashes series, but the scandal has put his playing future in the spotlight.
Paine was meant to play his first match back from a bulging disc in his neck for the University of Tasmania but the day's play was washed out.
