Helio Lending Pty Ltd, a Melbourne-based cryptocurrency lender, has been sentenced to a non-conviction bond by the Australian Securities and Investments Commission (ASIC) for falsely claiming to hold an Australian Credit License (ACL). Per the regulator, in August 2019, the company stated in a news article that it possessed ACL 391330, a specific credit license, but this was later found to be untrue. The firm also asserted in a circulating investor update from late 2018 that it had acquired the license by purchasing Cash Flow Investments and the license it held.
Helio was neither an ACL holder nor a representative of an ACL holder at the time the statement appeared,” the official release noted.
The ACL scheme was introduced in Australia in 2009 as part of the National Consumer Credit Protection Bill. It mandates that all financial institutions, including banks, credit unions, finance companies, and crypto lenders, must hold a license to offer products and services to consumers. The license ensures that these entities meet minimum standards and adhere to regulations.
Helio’s false claim was considered a grave violation, prompting legal action by the Australian Securities and Investment Commission (ASIC). The Deputy Chair of ASIC, Sarah Court, expressed her concern in the release, stating:
We expect entities and individuals to provide accurate information to their customers and potential customers.
Helio subsequently pleaded guilty to the charges. The company was sentenced according to Section 19B(1)(d) of the Crimes Act 1914 (Cth), and the ASIC noted that falsely claiming possession of an ACL is a violation of Section 30 of the National Consumer Credit Protection Act 2009.
The company committed to a recognizance arrangement that includes A$15,000 for a 12-month period, with the stipulation of demonstrating proper conduct. Helio’s website is currently under maintenance, and its Twitter account has been inactive, raising questions about its current operations.
This legal action against Helio is part of ASIC’s broader efforts to regulate the crypto sector in Australia. In recent weeks, ASIC has also launched legal actions against other crypto-related entities, including the trading platform eToro and the financial product comparison site Finder.com.
The AU$15,000 potential penalty is significantly less severe than the maximum $160,000 penalty that Helio could have faced. The good behavior bond, a legal measure often used for less serious offenses, means that Helio will only be convicted if it breaks the bond. If the company violates the terms, the amount will be forfeited.
