Crypto Lender Convicted for False Licensing Claims in Australia

Sahana Kiran
Source – Unsplash

Helio Lending, a crypto lending firm, has been ordered to serve a non-conviction bond after it was found to have provided deceitful information about having an Australian credit license. The action was taken by the Australian Securities and Investments Commission [ASIC]. In response to the growth of the crypto landscape, regulatory bodies have been implementing strategies to oversee its growth. Obtaining licenses for firms operating in the crypto sector has become imperative. Many companies are working to align with regulatory mandates.

However, Helio Lending chose not to follow suit. In an article published on its website in August 2019, the firm provided inaccurate information. Helio falsely claimed to possess an appropriate credit license, specifically ACL 391330. However, at the time this statement was made, Helio was neither a holder of an Australian Credit License nor a representative of such a license holder. It should be noted that Helio provided loans to consumers backed by crypto assets, during that period. The firm was using digital currencies as collateral for the loan.

In the recent sentencing, the company committed to a recognizance arrangement, which included A$15,000, spanning a 12-month period, under the stipulation of showing proper conduct. Helio was subjected to sentencing according to Section 19B(1)(d) of the Crimes Act 1914 (Cth). The ASIC noted that falsely claiming possession of an ACL when one does not have it is a violation of Section 30 of the National Consumer Credit Protection Act 2009.

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Helio Pleads Guilty

Helio previously admitted its mistake and entered a guilty plea. This was considered during the latest sentencing process. Another charge linked to content on the website in February 2019 was subsequently dropped. The company’s website is currently undergoing maintenance, and its Twitter account has also been dormant. Presently, Helio has a Twitter following of 12,000, and their last tweet stated,

Also Read: Coinbase Urges Australia to Fast-Track Crypto Regulation