The US SEC sued Helium developer Nova Labs, accusing it of selling unregistered securities and misleading investors

PANews reported on January 20 that according to The Block, the U.S. 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 is the latest and possibly final enforcement action under the leadership of outgoing Chairman Gary Gensler.

The lawsuit, filed last Friday, targets three tokens associated with Helium: the Helium Network Token (HNT), the Helium Mobile Token (MOBILE), and the Helium Internet of Things Network Token (IoT), which the SEC alleges were sold as unregistered securities. The lawsuit also accuses Nova Labs of misleading investors about multiple high-profile partnerships. Although the company told investors that companies such as Nestlé, Lime, and Salesforce were using the network, the lawsuit claims that these companies were neither customers nor "users" of the network. "In fact, when Nestlé and Lime learned that Nova Labs had publicly boasted about their alleged relationships, each company sent Nova Labs a cease and desist letter," the lawsuit states. The lawsuit seeks fines against the company and a ban on it from buying, offering, or selling any crypto assets that are offered as securities.

Haleem posted a provocative message on X on Sunday, calling the lawsuit "the last gasp of America's failed crusade against crypto companies." Haleem said: "The SEC wasted two years of our time and millions of our dollars pursuing any allegation they could think of... I don't get angry often, but this series of events is infuriating." Regarding the accusation that Helium misled investors, Haleem said: "We have addressed this issue in the past and worked with every company named in the complaint." Haleem concluded: "We will vigorously defend ourselves and continue the record of abject failures and blatant lies of the SEC led by Gensler. Not only for us, but for all DePIN projects. If the Helium hotspot is a security, then all DePINs are in danger. We will not let this happen."