The U.S. Securities and Exchange Commission (SEC) has again cracked down on Nova Labs under Gary Gensler’s leadership. Recently, the SEC filed a lawsuit against Nova Labs, the creator of the open-source Helium Network. The lawsuit alleged the company sold unregistered products and misled investors about its technology. This comes just days before Gensler steps down on January 20. The case highlights his tough stance on crypto and questions the SEC’s future direction. Gensler’s Final Stand: Nova Labs in the Crosshairs The SEC’s case against Nova Labs focuses on two core allegations: selling unregistered securities and deceptive marketing practices. The Helium Network, known for its decentralized wireless infrastructure, incentivizes users with its native crypto asset, HNT. The SEC said Nova Labs’ “Hotspots” and “Discovery Mapping” program are unregistered investments. G However, it does not stop there. Nova Labs was accused of misleading investors by claiming that big companies like Lime, Nestlé, and Salesforce used Helium’s network. The SEC says these false claims made the network seem more legitimate. This tricked investors into buying products and tokens connected to the network. Ripple’s Ripple Effect: A Lingering Battle The SEC’s actions against Nova Labs are similar to its high-profile lawsuit against Ripple Labs. In July 2023, a court decided that XRP, Ripple’s token, was not a security in programmatic sales. This was seen as a partial win for the crypto industry. However, the SEC had filed an appeal , showing it was not ready to give up the case. The Nova Labs case stands out as Gensler gets ready to leave the office. It shows the tense relationship between the SEC and the crypto world during his time. This case highlights the ongoing battles over crypto rules. With new leadership coming, many speculate that the SEC may ease its approach to crypto enforcement. A recent report suggests it might pause cases without fraud claims and focus on securities law violations. This shift could change crypto regulation. Crypto’s 2024 Losses: A Year in Review The SEC’s strict actions come as the crypto industry struggles with hacks and fraud in 2024. Blockchain security firm Immunefi reported the industry suffered $1.49 billion in losses, down 17% from $1.8 billion in 2023. Notably, 98.1% of the losses stemmed from 192 hacking incidents, with fraud accounting for the remaining 1.9%, amounting to $28 million. CeFi platforms were hit hardest, with thefts rising 77.5% to $726 million. High-profile breaches included a $305 million breach at DMM Bitcoin and a $235 million hack on WazirX’s wallet. Decentralized Finance (DeFi) remained a prime target, making up 51.4% of the total, while CeFi accounted for 48.6%. Ethereum and Binance Smart Chain were the most attacked blockchain, with Ethereum causing 44% of all blockchain losses. The post SEC Strikes Nova Labs as Gensler Prepares to Leave Office appeared first on TheCoinrise.com .
