SEC Sues Nova Labs
The SEC has taken legal action against Nova Labs, the creators of the Helium Network, alleging that they made false statements about their partnerships with major corporations, including Salesforce, Lime, and Nestlé.
On January 17, the SEC filed a lawsuit claiming that Nova Labs violated federal securities laws and defrauded customers.
The lawsuit focuses on the company’s “Hotspot” devices, which have been sold since 2019 and mine the Helium cryptocurrency. These devices also support a program called “Discovery Mapping,” which allows users to trade personal data for cryptocurrency rewards.
According to the SEC, Nova Labs deceived potential investors by falsely claiming that popular companies were actively using their wireless network. The companies named, such as Salesforce, Lime, and Nestlé, are said to have never used the network as Nova Labs had stated.
