The crypto lending platform pleaded guilty to ASIC’s charges, a plea the regulator took into account when sentencing.
The Australian Securities and Investments Commission (ASIC) has sentenced Melbourne-based cryptocurrency lending company Helio for falsely claiming that it held an Australian Credit License (ACL) in August 2019.
According to an official release from ASIC, Helio was sentenced to bail without conviction and a surety of AUD$15,000 (USD$9,600) for 12 months on condition of good behaviour.
ASIC Sentence Helio
Australia’s securities regulator filed charges against Helio in April 2022, alleging the company falsely stated in a news article on its website that it held ACL when in fact it did not. The lender also mentioned in an investor update that it obtained the license through its acquisition of CashFlow Investments.
However, according to ASIC, in both instances, Helio, which provided the crypto-backed loans, was neither an ACL holder nor a representative of an ACL holder. The company’s actions contravened Section 30 of the National Consumer Credit Protection Act 2009.
The crypto lender pleaded guilty to ASIC’s charges, which the regulator took into account during sentencing. The commission withdrew a second charge in February 2019 relating to alleged content on Helio’s website and sentenced the company under section 19B(1)(d) of the Crimes Act 1914 (Cth).
ASIC deputy chair Sarah Court said: "We expect entities and persons to provide accurate information to their customers and potential customers. Helio falsely claimed that it held an Australian credit licence, misleading customers into believing they had the protection afforded by such a licence."
ASIC Crackdown on Cryptocurrency Companies
ASIC has recently cracked down on a number of cryptocurrency companies. Helio’s ruling comes two weeks after the regulator sued crypto-related trading platform eToro over claims that its contracts for difference (CFD) products could harm investors.
CFDs are leveraged derivative products that enable users to speculate on the price of digital assets. eToro was one of the first companies to allow Bitcoin trading via CFDs and later added support for other cryptocurrencies.
The Australian regulator reportedly believes that due to the higher risk and volatility of eToro’s CFD products, they may not have been properly tested before being launched to users.
The agency also estimated that approximately 20,000 eToro customers lost money when trading CFDs between October 2021 and June 2023. The crypto lending platform pleaded guilty to ASIC’s charges, a plea the regulator took into account when sentencing. #澳大利亚 #法规