• Helio Lending, an Australia-based crypto lender, was sentenced to a non-conviction good behavior bond for falsely claiming it had an Australian credit license.
• The bond comes with a 15,000 Australian dollar ($9,600) penalty and a year of good behavior.
• ASIC has taken legal action against other crypto related firms in recent weeks.
Helio Lending Sentenced To Good Behavior Bond
Australia-based crypto lender Helio Lending Pty Ltd has been sentenced to a non-conviction good behavior bond for falsely claiming that it held an Australian credit licence when it did not. On Aug 17th, the Australian Securities and Investments Commission (ASIC) said Helio was sentenced to a non-conviction bond of 15,000 Australian dollars ($9,600) on condition of good behavior for one year. If the bond is broken then Helios will be convicted.
False Credit License Claim
Helio pleaded guilty to falsely stating it had an Australian credit license in an August 2019 news article that appeared on its website. The company offered crypto backed loans and is an Australian subsidiary of the United States based crypto focused public holding company Cyios Corporation which also owns the yet to launch nonfungible token platform Randombly. In late 2018 investor update circulated by Helio claimed that they received the license by buying out Cash Flow Investments and its held license.
ASIC Taking Action Against Crypto Related Firms
The ASIC’s decision follows other legal actions it has taken against crypto related companies in recent weeks. Earlier this month they sued trading platform eToro alleging its screening tests before offering leveraged derivative contracts were insufficient as well as suing Finder in December 2020 for offering Crypto Yield bearing product without proper licensing requirements being met.
Max Penalty Faced By Helio
The AU$15,000 potential penalty faced by Helio is significantly lighter than the maximum $160,000 penalty that could have been imposed on them if found guilty at trial or through negotiated settlement with ASIC investigators prior to court proceedings commencing..
Conclusion
In conclusion ASIC’s latest win shows how serious they are about enforcing regulation within the cryptocurrency industry in Australia and they will take necessary action if any laws are broken or false claims made regarding licensing or practices within businesses operating in this space.