US Securities and Exchange Commission (SEC) has filed a lawsuit against Nova Labs, the creator of Helium Network, alleging that it sold ‘unregistered securities’ and misled investors about high-profile partnerships.
SEC Alleges Helium Network’s Creator Nova Labs Misled Investors
The lawsuit was filed against three Helium-related tokens: the Helium Network Token (HNT), Helium Mobile Token (MOBILE), and Helium IoT Network Token (IoT). As per SEC’s filing, these three tokens were marketed and sold as unregistered securities, violating federal securities laws.
Filed on Friday, SEC’s lawsuit seeks monetary penalties and a ban on Nova Labs from purchasing, offering, or selling crypto assets classified as securities.
The SEC also accuses Nova Labs of overstating partnerships with major companies such as Nestlé, Lime, and Salesforce. Despite claims that these companies were actively using the Helium network, the SEC alleges they were neither customers nor users. In fact, the lawsuit reveals that when Nestlé and Lime learned of these claims, they sent cease-and-desist letters to Nova Labs.
Helium founder Amir Haleem had previously responded to criticism regarding the use of logos from Lime and Salesforce on Helium’s website, claiming that the company had approval to discuss use cases but would implement stricter protocols for logo usage going forward to avoid any confusion.
The lawsuit alleges that Nova Labs executives knowingly exaggerated these partnerships. In one internal message cited in the lawsuit, the company’s Business Development VP reportedly expressed disbelief that Nestlé hadn’t called them out sooner. Meanwhile, in response to Lime’s cease-and-desist letter, Nova Labs’ COO reportedly told the CEO “they also fired all their PR people so no one will challenge us.”
Helium Network Founder Amir Haleem Criticizes SEC
Founder Amir Haleem took to X, to call out the lawsuit as “the last gasp of a failed crusade against crypto companies in the U.S.”
as some of you have seen, the SEC has decided to sue us and @helium literally as they are walking out of the door. the last gasp of a failed crusade against crypto companies in the US
naturally, none of the claims hold any water at all. the SEC has wasted two years of our time…
— amir 🎈✊🛡️ (@amirhaleem) January 19, 2025
“If Helium hotspots are securities, it puts all DePINs in danger,” Haleem warned. “We won’t allow that to happen.”
Moreover, addressing the allegations of misleading investors, Haleem emphasized that Helium had previously clarified its position and worked with all the companies named in the lawsuit. He vowed to fight the SEC’s claims, framing the case as a pivotal moment for decentralized physical infrastructure networks (DePINs).
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