SEC Sues Helium Creator Nova Labs Ahead of Chair Gensler’s Exit

SEC Sues Helium Creator Nova Labs Ahead of Chair Gensler’s Exit featured

In Summary

  • SEC accuses Nova Labs of selling unregistered securities via Helium’s Hotspots and misleading partnerships
  • The lawsuit comes just before SEC Chair Gary Gensler steps down, known for strict crypto regulation
  • The case follows Ripple’s partial 2023 victory, with the SEC’s approach potentially shifting under new leadership
  • Crypto sector losses hit $1.49B in 2024, with DeFi protocols bearing over half of the hacks and fraud


Catenaa, Saturday, January 25, 2025 – The US Securities and Exchange Commission (SEC) has filed a lawsuit against Nova Labs, the creator of the Helium Network, accusing the company of selling unregistered securities.

Nova Labs has not yet responded to the lawsuit. 

The lawsuit was announced on January 17, just days before SEC Chair Gary Gensler stepped down on January 20. 

Nova Labs allegedly offered unregistered investment products, including “Hotspots” used to mine Helium’s cryptocurrency (HNT) and a “Discovery Mapping” program that rewarded users with crypto for data sharing.

The SEC also claims Nova Labs misled investors by falsely implying partnerships with companies like Lime, Nestlé, and Salesforce. 

Gensler, a strong advocate for strict crypto regulation, has faced ongoing tensions with the industry. Under his leadership, the SEC has pursued numerous enforcement actions, frequently citing the sale of “unregistered securities.” 

The Helium case follows Ripple Labs’ partial victory in July 2023 when a court ruled XRP was not an unregistered security in programmatic sales, a decision still under appeal. 

Reports suggest the SEC might reassess its enforcement approach under new leadership, focusing on fraud-related cases and pausing others involving securities law violations. 

This lawsuit highlights the agency’s continued scrutiny of the crypto sector. In 2024, the industry reported $1.49 billion in losses from hacks and fraud, with decentralized finance (DeFi) protocols accounting for more than half of those losses. 

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