Helium Faces SEC Lawsuit – CEO Warns Of DePIN Impact
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- SEC accuses Helium of selling unregistered securities via Hotspots.
- CEO Haleem defends the company, warns of potential DePIN sector harm.
- Lawsuit targets three Helium-related tokens, seeking penalties and restrictions.
The SEC has filed a lawsuit against Nova Labs, the company behind Helium Network, alleging it sold unregistered securities. CEO Amir Haleem strongly rejects the accusations, warning that such a move could stifle future blockchain innovations.
Helium Fights Back Securities Accusations
The Helium Network is preparing to challenge a lawsuit filed against it by the U.S. Securities and Exchange Commission (SEC). The SEC accuses HNT’s parent company, Nova Labs, of selling unregistered securities through its “Hotspots” devices, which are used to mine HNT tokens. Additionally, the SEC claims 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 argues that these tokens were sold without proper registration as securities. It also claims that Nova Labs falsely presented its partnerships with well-known brands, stating that they used the Helium network when they did not.
Helium’s CEO Presents its Rebuttal
In response, Helium CEO Amir Haleem has expressed confidence in the company’s ability to fight the allegations. He labelled the lawsuit as part of a broader effort to suppress blockchain innovation in the U.S. Haleem also criticized the SEC’s inconsistent positions over the past two years.
Haleem emphasized that Nova Labs has provided evidence to the SEC, proving its compliance. He also pointed out that written testimonials from companies such as Lime and Nestlé had been disregarded. The CEO argued that if SEC’s overreach is successful, it could severely impact the future of Decentralized Physical Infrastructure Networks (DePIN).
Haleem warned that the classification of Helium’s Hotspots as securities would set a dangerous precedent for other blockchain projects. He argued that such a ruling could create major risks for DePIN development, a rapidly growing field. Furthermore, he vowed to vigorously defend the company in the lawsuit.
Impact of the SEC v Nova Labs Lawsuit
The SEC also seeks to impose penalties on Nova Labs and prevent it from offering any crypto assets as securities. The lawsuit marks one of the final actions under the tenure of SEC Chair Gary Gensler, who is set to resign today. As the case progresses, the company insists that the SEC’s claims are unfounded and harmful to innovation.
Helium has faced scrutiny over its use of brand logos from companies such as Lime and Salesforce, which later issued cease-and-desist letters. The SEC claims that Nova Labs knew the partnerships were exaggerated. According to the lawsuit, Nova Labs executives acknowledged the misleading nature of their statements.
However, Helium is committed to defend its operations for the broader DePIN sector. Haleem expressed frustration over resources spent to address the SEC’s claims.
As both parties prepare for a prolonged legal battle, the outcome of this lawsuit will have major implications for blockchain regulation and the future of decentralized infrastructure.
