Helio Lending Sentenced for False Claims of Credit License
The Australian Securities and Investments Commission (ASIC) has announced that Helio Lending, a cryptocurrency lender based in Melbourne, has been found guilty of falsely claiming to hold a credit license. This breach of consumer protection law is in violation of Australia’s National Consumer Credit Protection Act 2009. Here are the key points to know:
1. License claim: Helio Lending falsely claimed to hold an Australian Credit License (ACL) in an article on their website in August 2019.
2. Misleading customers: By making this claim, Helio misled their customers into believing they had the protections provided by an ACL.
3. ASIC’s response: The regulator expects entities and individuals to provide accurate information to customers. Helio’s false claim led to their punishment.
4. Punishment: Helio has entered a “recognisance” of $9,560 (AUD15,000) for 12 months, contingent on their good behavior.
5. Withdrawn charge: The second charge related to the content on Helio’s website has been withdrawn by the regulator.
Hot Take:
Helio Lending’s false claim of holding a credit license is a serious breach of consumer trust. The punishment serves as a reminder that accurate information is crucial in the crypto industry. ASIC’s actions aim to protect consumers and maintain the integrity of the market.
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