SEC Sues Helium Over Securities: Founder Vows Vigorous Defense
Helium, the company behind the decentralized wireless network, is facing a lawsuit from the U.S. Securities and Exchange Commission (SEC) alleging the sale of unregistered securities and misleading investors. Helium's founder, Amir Haleem, has vowed to "vigorously" defend the company, framing the lawsuit as part of a broader attack on the cryptocurrency industry.
SEC Targets Helium's Tokens and Partnerships
The SEC's lawsuit, filed on Friday, targets three Helium-related tokens: the Helium Network Token (HNT), Helium Mobile Token (MOBILE), and the Helium IoT Network Token (IoT). The agency claims these tokens were sold as unregistered securities.
Additionally, the lawsuit accuses Nova Labs, the creator of the Helium network, of misleading investors about partnerships with major companies. The SEC alleges that companies like Nestlé, Lime, and Salesforce were not actually customers or "users" of the Helium network, despite being presented as such. The lawsuit cites internal communications from Nova Labs executives allegedly acknowledging the exaggerated nature of these partnerships, and even mentions cease-and-desist letters issued by Nestle and Lime.
Haleem had previously downplayed criticism surrounding the use of company logos on Helium's website, stating that approvals had been granted to discuss use cases but that the company would be more rigorous about logo approval processes going forward.
A "Blood Boiling" Lawsuit: Helium Founder Fires Back
The SEC is seeking monetary penalties and wants to bar Nova Labs from offering or selling crypto asset securities. This lawsuit is among the final actions taken under outgoing SEC Chair Gary Gensler, who is set to resign on Monday.
In a defiant response on X (formerly Twitter), Haleem characterized the lawsuit as "the last gasp of a failed crusade against crypto companies in the US." He stated, "The SEC has wasted two years of our time and millions of our dollars pursuing any claim they could think of...I don't get angry very often, but this is a blood boiling sequence of events." He further clarified that they have addressed the partnership concerns in the past, and worked with each company named in the complaint.
Fighting for Helium and the Future of DePIN
Haleem pledged to fight the lawsuit not just for Helium but for all decentralized physical infrastructure network (DePIN) projects, arguing that a ruling against Helium could endanger the entire sector. "We'll defend ourselves vigorously and continue the Gensler SEC's track record of miserable losses and outright lies," Haleem concluded. "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."