The US Securities and Exchange Commission ( SEC ) has filed a lawsuit against Nova Labs, the creators of the Helium Network, accusing the company of misleading investors and violating securities laws. The SEC claims Nova Labs falsely stated that major corporations like Salesforce, Lime, and Nestlé were utilizing its wireless network, allegations the company has yet to address. The lawsuit, filed on January 17, focuses on Nova Labs’ "Hotspot" devices, which have been on the market since 2019. These devices mine Helium cryptocurrency and participate in a program called “Discovery Mapping,” where users can trade personal data for cryptocurrency rewards. According to the SEC, Nova Labs falsely promoted partnerships with well-known companies to attract investors. The regulator is seeking court-imposed restrictions on Nova Labs , including the return of any illegally obtained profits, pre-judgment interest, and financial penalties. However, details regarding financial losses or the size of potential fines remain undisclosed. Interestingly, the lawsuit has not impacted the value of Helium’s Solana-based HNT token, which has risen about 10% in the past 24 hours, now priced at $5.39. This case could mark one of the final enforcement actions led by SEC Chair Gary Gensler, who steps down from his position on January 20. Gensler’s tenure has been characterized by strict oversight of the cryptocurrency industry, with billions in settlements and fines imposed on various companies. With President-elect Donald Trump’s administration poised to take over, a significant shift in crypto regulations is anticipated. Trump, who previously expressed skepticism about digital currencies, has since become a vocal supporter of Bitcoin and other cryptocurrencies. His administration is expected to promote pro-crypto policies, potentially easing regulatory pressure on the industry. One of the initiatives under discussion is a Bitcoin National Reserve , which aims to foster widespread adoption of cryptocurrencies. Trump has already demonstrated his pro-crypto stance by launching a meme coin and supporting decentralized finance projects, including World Liberty Financial. As the SEC transitions to new leadership, the future of cryptocurrency regulation in the US remains uncertain. Nova Labs’ legal troubles highlight the challenges facing the industry as it balances innovation with compliance in an evolving regulatory environment.
