Gold Finance reported that the US Securities and Exchange Commission (SEC) has filed a lawsuit against Nova Labs, the founder of Helium, claiming that its issuance is an unregistered encryption asset security and misleading investors into believing that it has partnerships with Lime, Nestlé, and Salesforce. The lawsuit, filed on Friday, targets three tokens related to Helium: Helium Network Token (HNT), Helium Mobile Token (MOBILE), and Helium Internet of Things Network Token (IoT). The SEC alleges that these tokens were sold as unregistered securities.

The lawsuit aims to impose a fine on the company and prohibit it from buying, offering, or selling any encryption assets offered in the form of securities. This enforcement action is one of the last actions taken by the SEC under the leadership of Chairman Gary Gensler, who will resign on Monday before Donald Trump's second presidential inauguration.