According to the latest development, the SEC is suing Nova Labs Inc, the company behind Helium(HNT) and three related altcoins.

The complaint accuses Nova Labs of engaging in unregistered sales of investment contracts and making materially false and misleading statements regarding crypto asset offerings and company stock.

According to the SEC filing, Nova Labs has been raising funds from investors since April 2019 through the sale of electronic devices called “Hotspot” and a rewards program known as the Discovery Mapping Program. These programs provide returns in the form of three cryptocurrencies associated with Nova Labs:

• Helium Network Token (HNT)
• Helium Mobile Network Token (MOBILE)
• Helium IoT Network Token (IOT)

The SEC alleges that these activities qualify as unregistered securities offerings and violate federal securities regulations that require issuers to disclose important financial and operational details to protect investors.

The SEC also alleges that Nova Labs misled investors by making materially false statements regarding these investment agreements and the company’s stock.

*This is not investment advice.