Michaela
The U.S. Securities and Exchange Commission (SEC) has taken legal action against Nova Labs, Inc., accusing the tech company of making misleading statements regarding its partnerships with prominent corporations, just days before SEC Chair Gary Genslerās departure.
In a filing dated January 17, the SEC alleged that Nova Labs, the developers of the Helium Network, violated federal securities laws by selling unregistered investment products.
The products in question included “Hotspots,” devices designed to mine Heliumās native cryptocurrency (HNT), and a program called āDiscovery Mapping,ā which reportedly allowed users to trade personal data for cryptocurrency rewards.
The SEC further accused Nova Labs of misleading customers and engaging in deceptive practices while operating its programs. According to the regulatory filing, the company allegedly misrepresented its business partnerships by falsely claiming that major corporations, including Salesforce, NestlƩ, and Lime, were actively utilizing its wireless network. These claims were reportedly used to attract potential investors and promote the Helium Network.
Related: Judge Allows Insider Trading Lawsuit Against Coinbase Execs
The regulator is seeking a court order to impose permanent restrictions on Nova Labs in response to the alleged violations. The filing also calls for the return of any unlawfully obtained gains, pre-judgment interest, and financial penalties. However, the SEC did not provide specifics regarding financial losses or the potential fines involved.
Despite the SEC’s filing last Friday, HNT appeared resilient initially. According to data from CoinGecko, on January 19, the digital asset surged by approximately 10% over the previous 24 hours, reaching $5.39. However, the token has since retraced and is now trading at $4.64 at the time of writing.
Meanwhile, this lawsuit could mark one of the final enforcement actions under the leadership of SEC Chair Gary Gensler. Known for his critical stance on cryptocurrencies, Gensler has played a key role in strengthening regulatory oversight of the crypto industry throughout his tenure.
Related: Pure Fantasy to Delay: Lummis Joins White House CLARITY Push
This action emphasizes the ongoing tensions between the cryptocurrency sector and the SEC, as the classification of digital assets as “unregistered securities” has become a frequent point of contention during Gensler’s tenure.
The lawsuit stresses the commissionās ongoing focus on the crypto industry amid growing speculation about potential changes in regulatory priorities as new leadership, under Paul Atkins, prepares to take the helm.
Read More
- Analyst: Solana ETFs Unlikely Until 2026 Amid SEC Delays
- SEC Case Against Elon Musk Called Weak and Political by Expert
- SEC Appeals Ripple Ruling, Seeks XRP Classified as Unregistered Security
MICHAELA
Michaela is a news writer focused on cryptocurrency and blockchain topics. She prioritizes rigorous research and accuracy to uncover interesting angles and ensure engaging reporting. A lifelong book lover, she applies her passion for reading to deeply explore the constantly evolving crypto world.
