- The SEC fined Nova Labs $200,000 for misleading investors about companies using the Helium Network, marking a clear stance against deceptive claims in crypto-related stock offerings
- Regulators dismissed other allegations, stating the decision aligns with a broader effort to reshape their approach to crypto enforcement, possibly shifting toward structured regulatory frameworks instead of case-by-case lawsuits
- The SEC’s Crypto Task Force is working on new industry-wide rules, signaling that future enforcement may focus on transparency and compliance rather than aggressively targeting individual crypto projects
The U.S. Securities and Exchange Commission (SEC) recently reached a final judgment against Nova Labs, the company responsible for the Helium Network. In its conclusion, the Commission found the company guilty of making false claims about other corporations using its decentralized network.
Moreover, the SEC concluded that Nova Labs misled investors while actively selling shares in a private stock. According to the filing, the company claimed that industry leaders like Lime, Nestlé, and Salesforce were using the Helium Network, even though they actually weren’t.
The SEC accused it of violating Section 17(a)(2) of the Securities Act of 1933, a law that makes it illegal for companies to lie or mislead investors while offering securities. For that, Nova Labs has been ordered to pay a $200,000 penalty.
SEC Dismisses Unregistered Securities Accusations
Surprisingly, the SEC dismissed other claims accusing Nova Labs of selling unregistered securities via the Helium Network. At the time—the Commission argued that distributing tokens like HNT, MOBILE, and IOT—violated U.S. securities laws.
However, the SEC decided to dismiss these accusations, suggesting a major shift in regulatory stance. The Commission cited the efforts of its Crypto Task Force in coming up with a new regulatory framework for digital assets as the reason to not pursue further action against Nova Labs on these specific claims, signaling a potential move away from enforcement-driven regulation toward a broader, industry-wide approach
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