Australia-based crypto lender Helio Lending has recently been sentenced to a non-conviction good behavior bond for falsely claiming to have a local credit license. The Australian Securities and Investments Commission (ASIC) announced on August 17 that Helio has been given a bond of AUD 15,000 ($9,600) on the condition of good behavior for a year.
A non-conviction good behavior bond is usually granted for less serious offenses. In this case, it means that Helio will only be convicted if it violates the terms of the bond. The penalty of AUD 15,000 is significantly lighter than the maximum penalty of $160,000 that Helio could have faced.
ASIC revealed that Helio falsely stated that it held an Australian credit license in an August 2019 news article published on its website. The company pleaded guilty, and ASIC took this into account during the sentencing decision. As a result, a charge relating to a false representation of holding a license on Helio’s website was withdrawn.
Helio is an Australia-based subsidiary of Cyios Corporation, a United States-based crypto-focused public holding company. It specializes in offering crypto-backed loans and is also the owner of the upcoming nonfungible token platform Randombly.
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ASIC had initially charged Helio in April 2022 over the false license claim. In a previous investor update from late 2018, Helio had claimed to have acquired the license by purchasing Cash Flow Investments and its associated license.
This latest enforcement action by ASIC is part of its ongoing efforts to regulate the cryptocurrency industry in Australia. In recent weeks, ASIC has taken legal action against other crypto-related entities as well. In one case, it sued eToro, a trading platform, alleging that its screening tests for offering leveraged derivative contracts to retail investors were inadequate. ASIC also sued Finder.com in December, accusing the financial product comparison site of offering a crypto yield-bearing product without the required license.
The enforcement actions by ASIC reflect the growing scrutiny on the crypto industry globally, as regulators seek to establish a robust regulatory framework to protect investors and prevent fraud and misconduct. As the popularity of cryptocurrencies continues to rise, it is crucial for regulators to ensure the integrity and stability of the market.
In conclusion, Helio Lending, an Australia-based crypto lender, has been sentenced to a non-conviction good behavior bond for falsely claiming to have a local credit license. ASIC, the regulatory authority in Australia, imposed a penalty of AUD 15,000 on the company, which will only be convicted if it violates the terms of the bond. This enforcement action is part of ASIC’s efforts to regulate the crypto industry and ensure the protection of investors. With regulators around the world increasing their focus on cryptocurrencies, it is vital for companies in the industry to comply with the relevant regulations and operate with transparency and integrity.
