The US Securities and Exchange Commission (SEC) has sued Nova Labs, the creators of the Helium Network, for misleading investors and breaching securities laws. The SEC alleges that Nova Labs falsely claimed partnerships with major companies like Salesforce, Lime, and Nestlé to attract investors. These claims have not been addressed by Nova Labs.
The lawsuit, filed on January 17, centers on Nova Labs’ “Hotspot” devices, which have been available since 2019. These devices mine Helium cryptocurrency and are part of a program called “Discovery Mapping,” where users can exchange personal data for cryptocurrency rewards. The SEC argues that Nova Labs misrepresented its partnerships to gain investor interest.
The SEC is seeking various penalties against Nova Labs, including the return of profits gained illegally, pre-judgment interest, and financial fines. However, the specific financial losses or potential fines have not been revealed.
Interestingly, the lawsuit has not affected the value of Helium’s HNT token, which is based on Solana. The token’s price increased by about 10% in the last 24 hours, reaching $5.39. This lawsuit could be one of the last actions taken by SEC Chair Gary Gensler, who will leave his position on January 20. Gensler’s time at the SEC has been marked by strict regulation of the cryptocurrency sector, resulting in significant settlements and fines.
With Donald Trump’s administration set to take over, changes in cryptocurrency regulations are expected. Trump, who was once skeptical of digital currencies, has become a supporter of Bitcoin and other cryptocurrencies. His administration may introduce pro-crypto policies, potentially reducing regulatory pressures.
One proposal under consideration is a Bitcoin National Reserve to encourage broader cryptocurrency adoption. Trump has already shown his support for crypto by launching a meme coin and backing decentralized finance projects like World Liberty Financial.
