Crypto Firm Helio Lending Receives Non-Conviction Bond for False License Claims

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Melbourne-based crypto lending company, Helio Lending, which had previously admitted guilty to making false assertions about holding an Australian credit license, has been sentenced to a non-conviction good behavior bond for one year. The Australian Securities and Investments Commission (ASIC) announced on August 17 that Helio Lending was ordered to pay a non-conviction bond of 15,000 Australian dollars ($9,600), contingent on its observance of good behavior for the stipulated period.

A non-conviction good behavior bond is frequently granted for less severe offenses. In this context, the non-conviction bond implies that Helio Lending will only face conviction if it breaches the terms of the bond. The potential financial penalty of AU$ 15,000 represents a notably milder consequence compared to the maximum penalty of $160,000 that could have been imposed.

ASIC revealed that Helio Lending had provided misleading information by falsely asserting its possession of an Australian credit license in an August 2019 news article published on its official website. The guilty plea entered by Helio was taken into consideration during the sentencing process. Furthermore, a charge pertaining to a false claim of holding a license on the company’s website was withdrawn as part of the legal proceedings.

Helio Lending specialized in offering loans backed by cryptocurrencies and operates as an Australian subsidiary of Cyios Corporation, a U.S.-based publicly held firm with a focus on crypto assets. Notably, Cyios Corporation also owns the forthcoming nonfungible token (NFT) platform, Randombly.

The Australian regulator, ASIC, initiated legal action against Helio in April 2022 in connection with the aforementioned matter. In a communication to investors in late 2018, Helio Lending asserted that it had obtained the license through the acquisition of Cash Flow Investments, along with the associated license.

This development follows a series of other legal actions undertaken by ASIC within the crypto domain. Earlier in August, ASIC filed a lawsuit against the trading platform eToro, alleging inadequate screening procedures prior to offering leveraged derivative contracts to retail investors. In a separate case, ASIC sued financial product comparison site Finder.com in December, asserting that its crypto yield-bearing product had been offered without the requisite license.

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