Nova Labs, the founder of the Helium network, is facing a lawsuit from the U.S. Securities and Exchange Commission (SEC) for allegedly selling unregistered securities and misleading investors. The lawsuit filed Friday is one of the latest enforcement actions under outgoing SEC Chairman Gary Gensler. The SEC’s lawsuit focuses on three Helium-related tokens: Helium Network Token (HNT), Helium Mobile Token (MOBILE), and Helium IoT Network Token (IoT). The agency alleges that these tokens were sold as unregistered securities and violated federal securities laws. Additionally, the SEC accuses Nova Labs of misleading investors about partnerships with leading companies such as Nestlé, Lime, and Salesforce. While Nova Labs claims that these companies used the Helium network, the SEC alleges that these companies were neither customers nor active users. The lawsuit states that both Nestlé and Lime sent cease and desist letters to Nova Labs after learning of the allegations. The SEC is seeking civil penalties and a ban on Nova Labs from purchasing, offering, or selling any crypto assets that are considered securities. Related News: Former Binance CEO Changpeng Zhao (CZ) Responds to "CZ Coin" Memecoin Rumors Helium founder Amir Haleem responded defiantly to the lawsuit in a post on X (formerly Twitter) today, accusing the SEC of waging a “failed war on crypto companies in the US.” Haleem also addressed the misleading partnership claims, saying, “We have addressed this issue in the past and have worked with every company named in the complaint on Helium.” Haleem added that he was reviewing Nova Labs’ practices, and had previously said in a statement that the company would implement a more rigorous logo approval process to avoid misunderstandings in the future. Haleem also viewed the case as a broader threat to decentralized physical infrastructure networks (DePINs), arguing that classifying Helium hotspots as securities could endanger the entire DePIN industry. Haleem concluded his remarks by saying: “We will vigorously defend ourselves and continue to uphold Gensler SEC’s record of miserable losses and outright lies. Not just for us, but for all DePIN projects. “Having Helium hotspots as securities would endanger all DePINs. We will not allow that to happen.” *This is not investment advice. Continue Reading: Founder of Three Altcoins Sued by the SEC Finally Issues a Statement
