SEC Sues Crypto Project for Misleading Investors

The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Nova Labs, accusing the creators of the Helium Network of misleading investors and violating securities laws.

The SEC alleges that Nova Labs falsely claimed partnerships with major companies like Salesforce, Lime, and Nestlé to promote its “Hotspot” devices, which mine Helium cryptocurrency and reward users for data sharing.

Filed on January 17, the lawsuit seeks penalties, the return of alleged illicit gains, and restrictions on Nova Labs. The SEC emphasized that the claimed partnerships were fabricated, misleading customers about the real-world adoption of the Helium network.

Despite the legal action, Helium’s HNT token, now based on Solana, has seen a 10% price increase in the past 24 hours, trading at $5.39. This case comes just days before SEC Chair Gary Gensler’s departure, marking one of his final crypto enforcement moves. Gensler’s tenure has been defined by aggressive actions against the crypto sector.

Under the incoming administration of President-elect Donald Trump, a shift in crypto regulation is expected. Trump, a vocal Bitcoin supporter, has outlined plans to advance crypto-friendly policies, including the potential creation of a Bitcoin National Reserve and initiatives to promote decentralized finance.