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Australia-based crypto lender Helio Lending has been sentenced to a one-year good behavior bond for falsely claiming to have a local credit license. In response to the penalty imposed by ASIC, Helio Lending is required to remain without any offenses for a year, otherwise, they will have to pay the given penalty.
Claimed to be a License Holder
On August 17, the Australian Securities and Investments Commission (ASIC) stated that Helio has been sentenced to a one-year good behavior bond and will have to pay a penalty of $9,600 (15,000 Australian dollars) if breached.
Good behavior bonds are typically given for less serious offenses. The non-conviction good behavior bond means that Helio will be convicted only if they breach the bond and will have to pay a penalty of $9,600. ASIC stated that they imposed this penalty because of Helio’s claim on their website in August 2019, falsely stating that they have an Australian credit license.
Helio accepted the offense that ASIC took into account in the penalty decision and withdrew the accusation regarding the false statement about having a license on their website. Helio offered crypto-backed loans and is a subsidiary of Cyios Corporation, a US-based crypto-focused public holding company, and also the owner of the yet-to-be-launched NFT platform Randombly.
ASIC Taking Legal Actions Against Financial Institutions
ASIC accused Helio in April 2022 regarding the matter. Helio claimed in an investor update circulating since late 2018 that they acquired the license by purchasing Cash Flow Investments and the license it owned.
ASIC’s recent victory follows its other crypto-related lawsuits launched in recent weeks. In early August, the regulatory agency filed a lawsuit against trading platform eToro, alleging that their scanning tests before offering leveraged derivative contracts to retail investors were inadequate.
In December, a lawsuit was also filed against the financial product comparison site Finder, with ASIC claiming that the site offered a crypto yield product without the necessary license.
