The US Securities and Exchange Commission (SEC) has initiated legal action against Nova Labs, the developers behind the Helium Network.
The SEC accuses Nova Labs of making deceptive claims about its partnerships with major corporations such as Salesforce, Lime, and Nestlé.
Gensler’s SEC Final Act Targets Helium
On January 17, the SEC filed a lawsuit claiming that Nova Labs defrauded its customers while breaching federal securities regulations.
The allegations focus on the company’s “Hotspot” devices, which they have sold since 2019. These devices mine the Helium cryptocurrency and support a program called “Discovery Mapping,” allowing users to exchange personal data for cryptocurrency rewards.
The SEC asserts that Nova Labs misled potential investors by falsely stating that well-known companies were actively using its wireless network. Among the companies cited were Salesforce, Lime, and Nestlé—claims the SEC describes as untrue.
To address these violations, the SEC seeks a court order imposing permanent restrictions on Nova Labs, the return of any illegally obtained gains, pre-judgment interest, and financial penalties. However, the regulator’s statement did not disclose details on the financial losses or potential fines.
Still, the financial regulator’s legal action has had no effect on Helium’s Solana-based HNT token. The digital asset is up by around 10% in the last 24 hours to $5.39 as of press time, according to BeInCrypto data.
Meanwhile, this lawsuit could be one of the last enforcement actions under SEC Chair Gary Gensler, who steps down on January 20.
Gensler has taken a hardline approach to crypto enforcement, securing billions in settlements and penalties against firms in the sector. However, the agency’s stance may shift under the incoming administration.
President-elect Donald Trump has transitioned from being a crypto skeptic to an outspoken supporter of Bitcoin. His administration is anticipated to advance pro-crypto policies that could reshape the regulatory environment for digital assets.
Among these plans is the proposed Bitcoin National Reserve, aimed at fostering a more favorable landscape for cryptocurrency adoption.
Already, he has taken several pro-crypto actions, including launching a meme coin and fronting a decentralized finance initiative called World Liberty Financial.
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