The U.S. Securities and Exchange Commission (SEC) has taken steps to sue Nova Labs, who are responsible for creating the Helium Network.
The U.S. Securities and Exchange Commission alleges that Nova Labs has been dishonestly representing its business partnerships with well-known companies like Salesforce, Lime, and Nestlé.
Gensler’s SEC Final Act Targets Helium
January 17 saw the Securities and Exchange Commission (SEC) filing a lawsuit against Nova Labs, accusing them of deceiving their clients and violating federal securities laws.
The accusations primarily concern the “Hotspot” gadgets that the company has been selling since 2019. These devices function in mining the Helium cryptocurrency and offer a service known as “Discovery Mapping.” This service enables users to swap their personal data for digital currency incentives.
The Securities and Exchange Commission claims that Nova Labs deceived potential investors by stating inaccurately that prominent firms like Salesforce, Lime, and Nestle were actively utilizing their wireless network. However, the SEC labels these assertions as false.
In an effort to rectify these infractions, the SEC is asking for a court order that will establish long-term limitations on Nova Labs, require them to return any ill-gotten profits, pay interest on those funds prior to judgment, and face monetary penalties. The specifics regarding financial losses or potential fines were not provided in the regulator’s announcement.
Despite the financial regulator taking legal action, Helium’s Solana-backed HNT token remains unaffected and has experienced a rise of approximately 10% in the past 24 hours, currently valued at $5.39 as reported by BeInCrypto.
In the coming days, this legal case might be among the final actions taken by SEC Chairman Gary Gensler, as he is due to step down from his position on January 20th.
Gensler has adopted a tough strategy towards enforcing cryptocurrencies, resulting in numerous settlements and fines totaling billions of dollars against related companies. Yet, it’s possible that the agency’s position could change with the arrival of the new government.
During his tenure, President-elect Donald Trump evolved from expressing skepticism towards cryptocurrencies like Bitcoin, to becoming a vocal advocate. Under his leadership, it’s expected that the administration will champion pro-cryptocurrency policies. These policies could potentially redefine the regulatory landscape for digital assets, marking a significant shift in their treatment and management.
One of the options here is the suggested Bitcoin National Cryptocurrency Depository, designed to encourage a friendlier environment for the widespread use of digital currencies such as Bitcoin.
He’s already made several moves supportive of cryptocurrencies, such as introducing a meme coin and spearheading a project known as World Liberty Financial, which focuses on decentralized finance.
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2025-01-20 02:41