SEC Sues Nova Labs on January 17, 2025, for Unregistered Crypto Securities Offerings Involving Hotspots and Discovery Mapping

Jan 18, 2025, 08:04 PM

The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Nova Labs, Inc., the creator of the Helium Network, alleging that the company engaged in unregistered offerings and sales of securities. The lawsuit, initiated on January 17, 2025, accuses Nova Labs of marketing electronic devices known as 'Hotspots' that mined the company's crypto assets, as well as a program called 'Discovery Mapping.' The SEC is seeking a permanent injunction against Nova Labs, along with the disgorgement of illegal proceeds and prejudgment interest. This legal action follows a period during which Nova Labs' Helium token (HNT) has seen a dramatic decline in value, from an all-time high of approximately $55 to about $5.