The United States Securities and Exchange Commission (SEC) has filed a lawsuit against Nova Labs, the developers behind the Helium network.
The SEC accuses Nova Labs of making misleading statements about its partnerships with major companies 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 violating federal securities regulations.
The allegations focus on the company’s “Hotspot” devices, which it has 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 claims Nova Labs misled potential investors by falsely representing that well-known companies were actively using its wireless network. Among the companies cited were Salesforce, Lime and Nestlé, claims the SEC calls false.
To remedy these violations, the SEC is seeking a court order imposing permanent restrictions on Nova Labs, disgorgement of any illegally obtained gains, prejudgment interest, and financial penalties. However, the regulator’s statement did not disclose details of financial losses or potential fines.
Yet the financial regulator’s legal action had no effect on Helium’s Solana-based HNT token. The digital asset rose about 10% in the past 24 hours to $5.39 at press time, according to data from BeInCrypto.
Meanwhile, this lawsuit could be one of the last enforcement actions under SEC Chairman Gary Gensler, who resigns on January 20.
Gensler has taken a tough approach to crypto enforcement, securing billions in settlements and sanctions against companies in the sector. However, the agency’s position could change under the new administration.
President-elect Donald Trump has gone from being a crypto skeptic to a staunch supporter of Bitcoin. His administration is expected to promote 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.
He has already taken several steps in support of cryptocurrency, including launching a coin and supporting a decentralized finance initiative called World Liberty Financial.
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