- The SEC accuses Helium of selling unregistered securities via hotspots.
- CEO Halim defends the company, warning of potential damage to the DePIN sector.
- The lawsuit targets three helium-related tokens, demanding penalties and restrictions.
The Securities and Exchange Commission has sued Nova Labs, the company behind the Helium Network, alleging that it sold unregistered securities. CEO Amir Halim strongly rejects these accusations, warning that such a move could stifle future blockchain innovations.
Helium fights securities charges
Helium Network is preparing to appeal the lawsuit brought against it by the US Securities and Exchange Commission (SEC). The SEC accuses HNT’s parent company, Nova Labs, of selling unregistered securities through its “hotspot” devices, which are used to mine HNT tokens. Additionally, the SEC alleges that Nova Labs misled investors about partnerships with companies like Lime, Nestlé, and Salesforce.
The SEC’s complaint focuses on three Helium-related tokens, including HNT, MOBILE, and IoT. The agency says these tokens were sold without proper registration as securities. It also claims that Nova Labs falsely represented its partnerships with well-known brands, stating that it used… Helium network when they don’t.
Helium The CEO offers his rebuttal
In response, Helium CEO Amir Halim said Express Confidence in the company’s ability to combat these allegations. Describing the lawsuit as part of a broader effort to suppress blockchain innovation in the United States, Halim also criticized the SEC’s inconsistent stances over the past two years.
Halim confirmed that Nova Labs had submitted evidence to the SEC proving its compliance. He also noted that written testimonials from companies like Lime and Nestlé were ignored. The CEO said that if the SEC bypass is successful, it could severely impact the future of decentralized physical infrastructure (DePIN) networks.
Halim warned that classifying Helium touchpoints as securities would set a dangerous precedent for other blockchain projects. Such a ruling could create significant risks for the development of DePIN, a rapidly growing field, he said. Furthermore, he pledged to vigorously defend the company in the lawsuit.
Impact of the SEC’s lawsuit against Nova Labs
The SEC is also seeking to sanction Nova Labs and prohibit it from offering any crypto assets as securities. The lawsuit represents one of the final actions in a term Chairman of the Supreme Education Council Gary Gensler, who is scheduled to resign today. As the case progresses, the company insists that the SEC’s allegations are baseless and harmful to innovation.
Helium faced scrutiny over its use of brand logos from companies like Lime and Salesforce, which later issued cease and desist letters. The SEC claims Nova Labs knew the partnerships were overrated. According to the lawsuit, Nova Labs executives acknowledged the misleading nature of their data.
However, Helium is committed to defending its operations to the broader DePIN sector. Halim expressed frustration with the resources spent processing SEC claims.
As both parties prepare for a long legal battle, the outcome of this lawsuit will have major implications for blockchain regulation and the future of decentralized infrastructure.