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

Jan 19, 2025, 05:44 AM

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, claims that from April 2019 to the present, Nova Labs made unregistered offers and sales of electronic devices known as 'Hotspots' that mined the company's crypto assets, as well as a program called 'Discovery Mapping' that allows users to trade data for crypto. The SEC is seeking a permanent injunction against Nova Labs, along with the disgorgement of illegal proceeds and prejudgment interest. This legal action comes shortly before SEC Chair Gary Gensler's departure from the agency, and it has drawn attention as one of his final initiatives.