The Australian Securities and Investment Commission (ASIC) has sentenced Melbourne-based cryptocurrency lending firm Helio for falsely claiming it held an Australian credit license (ACL) in August 2019. Helio was sentenced to a non-conviction bond and entered into a recognizance of A$15,000 ($9,600) for 12 months on the condition of good behavior.

ASIC charged Helio in April 2022, accusing the firm of falsely representing in a news article on its website that it held an ACL, whereas it did not. The lender also mentioned in an investor update that it obtained the license through the acquisition of CashFlow Investments. However, on both occasions, Helio, which offered crypto-backed loans, was neither an ACL holder nor a representative of an ACL holder, according to the ASIC.

The crypto lender pleaded guilty to ASIC’s charges, and the regulator considered the plea during the sentencing. The Commission withdrew a second charge relating to alleged content on Helio’s website in February 2019 and sentenced the firm under section 19B(1)(d) of the Crimes Act 1914(Cth).

ASIC Deputy Chair Sarah Court said: “We expect entities and individuals to provide accurate information to their customers and potential customers. Helio falsely claimed that it held an Australian Credit license, misleading their customers to believe that they had the protections afforded by such a license.”

This sentencing comes as part of ASIC's recent crackdown on crypto firms, including a lawsuit against crypto-related trading platform eToro over claims that its contract for difference (CFD) product could harm investors.