Helium fights back against SEC allegations over unregistered securities

Solana-based Helium Network is gearing up to contest a lawsuit filed against it by the US Securities and Exchange Commission (SEC).

On Jan. 17, the SEC announced legal action against Nova Labs, the company behind the Helium Network.

The regulator claims Nova Labs violated securities laws by offering unregistered securities through its products and services. These include “Hotspots,” devices used for mining Helium’s HNT tokens, and the “Discovery Mapping” program, which rewards users with tokens in exchange for their private data.

The SEC also accuses Nova Labs of misleading investors about partnerships with well-known companies like Lime, Nestlé, and Salesforce.

According to the complaint, Nova Labs suggested these firms were active users of the Helium network, though the SEC alleges otherwise.

Helium’s response

On Jan. 19, Amir Haleem, CEO of Nova Labs, expressed confidence in the company’s ability to contest the claims.

He called the lawsuit unfounded and part of a larger pattern of enforcement targeting blockchain innovation in the US.

Haleem criticized the SEC for what he described as shifting and inconsistent arguments over the past two years. He noted that Helium has cooperated extensively with the SEC, even providing evidence of engagement with the companies mentioned in the complaint.

Haleem wrote:

“The icing on the cake is that we somehow defrauded our Series D investors, despite literally all of them telling the SEC that none of that happened. we’ve addressed this in the past, and have worked with every company on Helium mentioned in the complaint. apparently written testimonials from the companies themselves are insufficient for Gensler and his goons.”

He warned that labeling Helium Hotspots as securities could have far-reaching consequences for Decentralized Physical Infrastructure Networks (DePIN). According to Haleem, such a precedent would deter innovation and create additional risks for similar blockchain projects.

Haleem concluded:

“We’ll defend ourselves vigorously and continue the Gensler SEC’s track record of miserable losses and outright lies. not just for us, but for all DePIN projects. if Helium hotspots are securities, it puts all DePINs in danger. we won’t allow that to happen.”

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