SEC indicts Helium’s Nova Labs for fraud and false Salesforce, Lime, Nestlé claims
The post SEC indicts Helium’s Nova Labs for fraud and false Salesforce, Lime, Nestlé claims appeared on BitcoinEthereumNews.com.
The United States Securities and Exchange Commission (SEC) has charged Nova Labs, the firm behind the open-source Helium Network, with defrauding investors just days before SEC chair Gary Gensler steps down on January 20. The SEC claims that Helium’s Nova Labs broke several statutes and intends to hold it responsible for violating Sections 5(a), 5(c), and 17(a)(2) of the Securities Act of 1933 and Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934. The SEC seeks permanent and conduct-based injunctions, ejection of ill-gotten gains, pre-judgment interest, and civil penalties. The Nova Labs trial will begin after Gary Gensler’s tenure The SEC has alleged that since April 2019, Nova Labs has defrauded the public in several ways by making unregistered offers and securities sales. The firm offered and sold electronic devices called “Hotspots” that mined Nova Labs’ crypto assets. Moreover, Nova Labs sold “Discovery Mapping,” a program where users can exchange their private data for Nova Labs’ crypto assets. Investors are vulnerable to unregistered securities since they can lose layers of protection while transacting. It is very difficult to identify clear money trails or even track an investment if it’s failing. The SEC had previously brought many such lawsuits under Gary’s leadership. Nova Labs was also charged with issuing materially false and deceptive statements to lure prospective investors. According to the SEC, Nova Labs lied that prominent companies like Lime, Nestlé, and Salesforce are using its wireless network for their operations. However, upon investigation, it was clear that these firms were not relying on this network. SEC’s new team may close several cases in 2025 Paul Atkins, Trump’s crypto-friendly pick for SEC chair and former agency commissioner, is widely expected to end a crypto crackdown led by President Biden’s Democratic SEC chair, Gary Gensler. However, it is unclear…
Filed under: News - @ January 19, 2025 1:16 pm