The United States Securities and Exchange Commission (SEC) filed a lawsuit against Nova Labs, the company behind the Helium
$4.32
network, accusing it of selling unregistered securities and making misleading claims to investors.
The lawsuit was submitted on January 17, just before SEC Chair Gary Gensler stepped down and Donald Trump assumed the presidency.
Nova Labs, previously known as Helium Inc., has been selling devices called hotspots since 2019. These devices share internet connections and mine cryptocurrency tokens, which the SEC argues were sold as unregistered securities.
Did you know?
Subscribe – We publish new crypto explainer videos every week!
What is Chainlink? LINK Explained Simply (ANIMATED)
The SEC also highlighted a feature called “Discovery Mapping”, which lets users exchange their personal data for cryptocurrency.
The agency claimed that Nova Labs made false statements to investors, including claims that well-known companies like Lime, Nestlé, and Salesforce were using its network. However, the lawsuit stated these companies were not affiliated with Nova Labs and had even sent cease-and-desist letters over the misleading claims.
According to the SEC, these actions violated federal securities laws by misleading investors. The lawsuit calls for Nova Labs to face financial penalties and be permanently barred from offering unregistered securities.
Amir Haleem, the CEO and co-founder of Nova Labs, rejected the accusations in a post on X, stating, “Naturally, none of the claims hold any water at all”. He criticized the SEC for wasting time and resources over what he described as baseless claims.
On January 14, Gary Gensler shared his views about Bitcoin
$105,214.23
and other cryptocurrencies on CNBC’s “Squawk Box”. What did he say? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
