The US Securities and Exchange Commission (SEC) has filed a lawsuit against Nova Labs, the creator of the Helium network, accusing the company of selling unregistered securities and misleading investors.
This legal action marks one of the last enforcement moves under outgoing SEC Chair Gary Gensler, who is set to step down ahead of Donald Trump’s second presidential term.
The lawsuit, filed Friday, 17 January 20225, targets three Helium-related tokens: the Helium Network Token (HNT), Helium Mobile Token (MOBILE), and the Helium IoT Network Token (IoT). The SEC alleges these tokens were sold as unregistered securities, violating federal securities laws.
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SEC Alleges Nova Labs Misled Investors
Additionally, the SEC claims Nova Labs misled investors about its business partnerships. The lawsuit alleges that Nova Labs falsely promoted high-profile companies like Nestlé, Lime, and Salesforce as network users, despite these companies having no such association.
According to the SEC, Nestlé and Lime issued cease-and-desist letters upon discovering Nova Labs’ misleading claims.
“Indeed, when Nestlé and Lime learned that Nova Labs was publicly touting their purported relationships, each issued Nova Labs a cease-and-desist letter,” the lawsuit states.
Internal communications cited in the complaint suggest Nova Labs executives were aware of the exaggerated claims. One executive reportedly expressed disbelief that the company hadn’t been challenged earlier, while another commented that Lime’s lack of a public relations team might shield the firm from scrutiny.
The SEC is seeking monetary penalties against Nova Labs and aims to bar the company from offering or selling crypto assets classified as securities. This lawsuit adds to Gensler’s controversial tenure, marked by increased scrutiny of crypto firms.
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Helium Founder Pushes Back
In response, Helium founder Amir Haleem posted a strongly worded message on X, denouncing the lawsuit as “the last gasp of a failed crusade against crypto companies in the US.”
Haleem criticized the SEC for wasting time and resources, stating, “I don’t get angry very often, but this is a blood-boiling sequence of events.”
Regarding allegations of misleading investors, Haleem claimed Nova Labs had addressed these concerns in the past and had communicated with the companies mentioned in the complaint.
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
Haleem also defended Helium’s role in decentralized physical infrastructure networks (DePIN), warning that if Helium’s hotspots are deemed securities, the entire DePIN ecosystem could face regulatory challenges.
“We’ll defend ourselves vigorously,” Haleem said, vowing to fight for Helium and other DePIN projects. “We won’t allow that to happen.”
This lawsuit underscores the SEC’s ongoing focus on crypto enforcement, even as leadership transitions loom.
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The post In Gensler’s Final Act, SEC Sues Helium Creator Nova Labs For Alleged Unregistered Securities Sales appeared first on 99Bitcoins.
