Gensler’s SEC Final Act Targets Helium

The US Securities and Exchange Commission (SEC) has initiated legal action against Nova Labs, the developers behind the Helium Network.

The US Securities and Exchange Commission (SEC) has taken legal action against Nova Labs, the company behind the Helium Network. The SEC alleges that Nova Labs misled investors by making deceptive claims about its partnerships with major corporations.

According to the SEC's complaint, filed on January 17 in the District Court for the Southern District of New York, Nova Labs engaged in fraudulent practices and violated federal securities laws. The SEC alleges that the company made false and misleading statements about its partnerships with well-known companies, including Salesforce, Lime, and Nestle, to promote its Hotspot devices and attract investors.

The SEC alleges that Nova Labs claimed these companies were actively using its wireless network, which the SEC alleges is not true. The SEC also alleges that Nova Labs failed to disclose that its Hotspot devices were primarily used to mine Helium cryptocurrency and not to provide wireless internet access.

The SEC alleges that Nova Labs's actions misled potential investors and violated the registration and anti-fraud provisions of the federal securities laws. The SEC is seeking a court order imposing permanent restrictions on Nova Labs, compelling them to return any illegally obtained gains with pre-judgment interest, and paying financial penalties.

However, the SEC's statement does not disclose details on the financial losses or potential fines.

The SEC's legal action has not impacted Helium's Solana-based HNT token. The digital asset soared by around 10% in the last 24 hours, trading at $5.39 at press time, as per BeInCrypto's data.

This lawsuit is likely one of the last enforcement actions under SEC Chair Gary Gensler, who steps down on January 20. Gensler's tenure has seen a hardline approach to crypto enforcement.

Under Gensler, the SEC has secured billions in settlements and penalties against crypto firms. However, the agency's stance on crypto may shift under the incoming administration.

President-elect Donald Trump has transitioned from crypto skeptic to an outspoken proponent of Bitcoin. His administration is expected to advance pro-crypto policies that could reshape the regulatory landscape for digital assets.

Among these plans is the proposed Bitcoin National Reserve, which aims to create a more favorable environment for cryptocurrency adoption.

Already, he has taken several pro-crypto actions, including launching a meme coin and fronting a decentralized finance initiative called World Liberty Financial.