The SEC recently filed a lawsuit against Nova Labs, the creator of the Helium decentralized wireless network, claiming the company sold unregistered securities since 2019 through their electronic devices called hotspots, which mine crypto tokens while offering internet connectivity. The lawsuit highlights Nova Labs' practice of allowing users to exchange private data for crypto tokens and alleges the company made false claims about partnerships with major firms. Nova Labs stated in 2022 that it would implement stricter marketing processes after facing disputes regarding these partnerships. The SEC seeks financial penalties against Nova Labs and aims to prevent the company from engaging in unregistered securities offerings. This legal action coincides with the resignation of SEC Chair Gary Gensler, as a new pro-crypto administration takes over, signaling a potential shift in regulatory focus towards digital assets.

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