SEC Settlement with Nova Labs Over Helium Network Dispute

SEC Settlement with Nova Labs Over Helium Network Dispute

The US Securities and Exchange Commission (SEC) recently settled a lawsuit with Nova Labs, the developer of the decentralized wireless network Helium. The agreement involved the dismissal of allegations regarding the issuance of unregistered securities and a $200,000 civil penalty. The lawsuit, filed in January 2025 during former Chair Gary Gensler’s tenure, marked one of the SEC’s final enforcement actions against a cryptocurrency developer before his departure. The settlement, which includes a dismissal with prejudice, signifies that Nova Labs cannot face similar charges related to the issuance of its native token Helium (HNT) in 2019. The company clarified in an April 10 blog post that the distribution of HNT, IOT, and MOBILE tokens through the Helium Network is not considered securities, as confirmed by the outcome of the settlement.

Nova Labs also agreed to pay the SEC $200,000 to settle civil securities fraud charges without admitting or denying wrongdoing. This development highlights the evolving regulatory landscape in the crypto industry and the implications for blockchain developers and token issuers.