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Australian- based crypto lender Helio has been sentenced for falsely claiming it held a local credit license.
Melbourne-based cryptocurrency lender Helio Lending received a sentence for a non-conviction good behaviour bond for a year after it falsely claimed to have a local credit license.
The Australian Securities and Investment Commission (ASIC) said Helio Lending had been sentenced for stating that it held a local credit license. Helio was sentenced to a non-conviction bond of AU$ 15,000 ($9,600) based on the condition it displays good behaviour for a year.
In a media statement, the ASIC said:
“Melbourne-based cryptocurrency lender Helio Lending Pty Ltd (Helio) has been sentenced to a non-conviction bond for falsely claiming that it held an Australian credit licence (ACL) when it did not.
Helio entered into a recognisance in the sum of $15,000 for a period of 12-months on the condition they are of good behaviour.”
The ASIC states the lender made false representations in a news article on its website in August 2019, claiming it held a local credit license. According to the Commission, “Helio was neither an ACL holder nor a representative of an ACL holder at the time the statement appeared.”
The ASIC explained that falsely claiming to have an ACL breaches section 30 of the National Consumer Protection Act 2009. The crypto lender was sentenced under section 19B(1)(d) of the Crimes Act 1914.
ASIC Will Not Tolerate “Misleading” Statements
At the time of the false claim, Helio offered crypto-backed loans to consumers using crypto as security over the loan. The lender pleaded guilty to the charge of making false statements. A further charge relating to alleged content on Helio’s website was withdrawn.
ASIC Deputy Chair Sarah Court commented on Helio’s conduct and sentence, saying:
“We expect entities and individuals to provide accurate information to their customers and potential customers. Helio falsely claimed that it held an Australian Credit licence, misleading their customers to believe that they had the protections afforded by such a licence.”
The sentence of a non-conviction good behaviour bond means that the lender will only face conviction if it breaks its bond.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.