SEC Finalizes Judgment Against Nova Labs
On April 23, 2025, the U.S. Securities and Exchange Commission (SEC) finalized a judgment against Nova Labs, Inc., the entity behind the controversial Helium Network—a decentralized wireless service. This legal action stemmed from allegations of deceptive practices related to the sale of preferred stock in a private offering.
Details of the Case
The court proceedings, initiated on January 17, 2025, in the Southern District of New York, accused Nova Labs of disseminating misleading information to potential investors.
Specifically, the SEC claimed that the company falsely asserted partnerships or current usage of the Helium Network by well-known corporations such as Lime, Nestlé, and Salesforce, despite these companies not actually utilizing the network.
Court Ruling
The final court ruling specifically addresses violations related to the Securities Act of 1933, indicating that Nova Labs made misrepresentations while engaging in the preferred stock offer.
Notably, the SEC chose to dismiss additional claims against the company, a strategic decision aimed at enhancing the agency’s regulatory stance within the cryptocurrency sector rather than indicating the validity of those allegations.
Settlement and Penalties
As part of the settlement, Nova Labs agreed to the judgment without conceding to the SEC’s findings, and it has been ordered to pay a civil fine of $200,000.
This case was led by SEC attorneys Emmy E. Rush and Christopher Colorado, with oversight from Judith Weinstock and other senior officials at the agency’s New York office.
