## SEC Drops Claims Against Nova Labs, Creator of Helium
The SEC has decided to drop its claims against Nova Labs, the team behind the crypto project Helium, concluding that their tokens—HNT, MOBILE, and IOT—are not classified as securities. This ruling also extends to the Helium WiFi Hotspots, allowing Helium to continue its mission of developing WiFi infrastructure and offering crypto incentives without the looming threat of endless legal battles with the SEC. The Helium team remains optimistic about their vision of creating a fully connected world through blockchain technology.
In a final move, former SEC chair Gary Gensler targeted Helium with an enforcement action. However, Helium announced on its blog that the case was dismissed unfairly, meaning the SEC cannot pursue similar claims against Helium in the future. The company also joyfully declared that its tokens, including those related to WiFi, can now be considered “saints.”
Helium operates a blockchain network that supports approximately 375,000 WiFi Hotspots, with the goal of decentralizing the WiFi industry. While its market capitalization peaked at around $5 billion in 2021, it has since decreased to $480 million. Notably, since Trump’s inauguration, the SEC has dropped several high-profile cases, including those involving Ripple, Coinbase, and Uniswap.
“Today marks a major win for Helium and The People’s Network,” Helium stated on their blog. “Nova Labs, the founding team behind Helium, confirms that the SEC has agreed to dismiss with prejudice its claims that Nova Labs sold unregistered securities. With this dismissal, we can now definitively say that all compatible Helium Hotspots and the distribution of HNT, IOT, and MOBILE tokens through the Helium Network are not securities.”
However, the SEC will still impose a $200,000 fine on Nova Labs related to a civil case involving major companies such as Nestle, Lime, and Salesforce. The SEC alleged that Nova Labs engaged in fundraising misconduct by making exaggerated claims about their relationships with these firms during a token sale in 2021-2022. They argued that Nova Labs inflated its valuation to $1 billion by misleading investors. Although Helium had limited interactions with companies like Nestle, they presented these firms as partners and users of their technology.
The $200,000 settlement allows Helium to move forward without admitting guilt. This incident serves as a valuable lesson for other crypto projects, highlighting the risks associated with marketing fundraising campaigns. “With the dismissal of the SEC’s unregistered securities claims with prejudice,” Helium wrote on their blog, “the outcome establishes that selling hardware and distributing tokens for network growth does not automatically make them securities in the eyes of the SEC.”
