The US Securities and Exchange Commission (SEC) has sued Nova Labs, the developer of the Helium Network.
The SEC accused Nova Labs of making misleading statements about partnerships with major corporations such as Salesforce, Lime and Nestlé.
Gensler’s final action targets Helium
On January 17, the SEC was filed sued, accusing Nova Labs of defrauding customers and violating federal securities regulations.
The allegations revolve around “Hotspot” devices that the company has been selling since 2019. These devices mine the Helium cryptocurrency and support the “Discovery Mapping” program, which allows users to exchange personal data to receive cryptocurrency rewards.
The SEC claims Nova Labs misled potential investors by claiming that well-known companies were using its wireless network. Among the companies mentioned were Salesforce, Lime and Nestlé, statements the SEC said were false.
To address these violations, the SEC seeks a court order imposing permanent restrictions on Nova Labs, requiring the return of any profits illegally obtained, with interest before judgment. sanctions and financial penalties. However, the agency’s statement did not elaborate on financial losses or possible fines.
However, the financial regulator’s legal action does not affect Helium’s Solana-based HNT Token. The digital asset has increased about 10% in the past 24 hours to $5.39 as of press time, according to data from TinTucBitcoin.
Meanwhile, this lawsuit could be one of the last enforcement actions under SEC Chairman Gary Gensler, who will leave the position on January 20.
Gensler has taken a tough approach to cryptocurrency enforcement, achieving billions in settlements and fines against companies in the sector. However, the agency’s stance may change under the incoming new administration.
President-elect Donald Trump has gone from a cryptocurrency skeptic to a strong Bitcoin supporter. His administration is expected to promote pro-crypto policies, which could reshape the regulatory environment for digital assets.
One of these plans is the proposed Bitcoin National Reserve, which aims to foster a more favorable environment for cryptocurrency adoption.
He has taken several pro-crypto actions, including launching a meme coin and launching a DeFi initiative called World Liberty Financial.