Helium Network Faces SEC Lawsuit: Deceptive Claims and Potential Fallout
The US Securities and Exchange Commission (SEC) has filed a lawsuit against Nova Labs, the developers behind the Helium Network, accusing them of deceptive practices. The SEC claims Nova Labs misled customers about partnerships with major corporations like Salesforce, Lime, and Nestlé.
The SEC's complaint, filed on January 17, centers around Nova Labs' "Hotspot" devices, which have been sold since 2019. These devices mine the Helium cryptocurrency and offer rewards for users sharing personal data. The SEC alleges that Nova Labs falsely claimed major companies were using its network, which led to misleading investors.
The regulatory body seeks permanent restrictions on Nova Labs, return of illicit gains, and financial penalties, although it has not disclosed specifics on the fines or losses. Despite the lawsuit, the price of Helium’s $HNT token has risen 10%, reaching $5.39.
This action is part of SEC Chair Gary Gensler's aggressive crypto enforcement, which is nearing its end as he steps down on January 20. The shift in leadership could lead to a change in regulatory approach, with President-elect Donald Trump poised to promote pro-crypto policies, including a Bitcoin National Reserve to encourage adoption.
Material prepared by the exchange: coytx.com
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