The SEC has initiated legal action against Nova Labs, the company responsible for the open source Helium Network.
The SEC alleges that Nova Labs has been offering and selling unregistered investment products, including devices that mine cryptocurrencies and a program in which users can exchange their personal data for crypto assets.
In a statement released on January 17, the SEC charged Nova Labs with selling unregistered securities through the sale of "Hotspots," electronic devices that mine the company's cryptocurrency, Helium (HNT), and a program known as "Discovery Mapping," which allows users to exchange their personal data for cryptocurrencies.
In addition, the SEC has filed charges against Nova Labs for making misleading statements to potential investors.