The US Securities and Exchange Commission (SEC) has filed a lawsuit against Nova Labs, the creator of Helium Network, alleging it sold unregistered securities and misled investors about high-profile corporate partnerships. This development marks the latest in the SEC’s scrutiny of cryptocurrency companies.
SEC Targets Helium Tokens as Securities
The lawsuit centres on three tokens related to the Helium Network: Helium Network Token (HNT), Helium Mobile Token (MOBILE), and Helium IoT Network Token (IoT). The SEC claims these tokens were marketed and sold as securities without proper registration, violating federal laws.
Filed last Friday, the lawsuit aims to bar Nova Labs from dealing in crypto assets classified as securities and seeks monetary penalties. SEC Chair Gary Gensler has repeatedly highlighted the agency’s concerns over unregistered securities within the crypto industry, and this case further underscores the Commission’s aggressive stance.
Alleged Misrepresentation of Partnerships
One of the more explosive elements of the lawsuit involves accusations that Nova Labs misled investors about partnerships with major companies like Nestlé, Lime, and Salesforce. According to the SEC, Nova Labs falsely claimed these companies were active users of the Helium network.
- Nestlé and Lime’s response: Both companies issued cease-and-desist letters upon learning of these claims. The SEC states that neither was a customer nor a user of Helium’s services, contrary to what Nova Labs promoted to investors.
- Internal communications: The SEC cited internal messages suggesting Nova Labs executives knowingly exaggerated these partnerships. For instance, the company’s Business Development VP reportedly expressed surprise that Nestlé hadn’t taken action sooner. Similarly, the COO allegedly dismissed Lime’s cease-and-desist letter, noting that the company had “fired all their PR people.”
These allegations, if proven, could significantly damage Helium’s credibility and further fuel the SEC’s claims of misleading practices.
Founder Amir Haleem Fights Back
In the wake of the lawsuit, Helium founder Amir Haleem took to X (formerly Twitter) to criticise the SEC’s actions, describing them as a desperate attempt to clamp down on crypto companies.
Haleem tweeted:
“The SEC has wasted two years of our time… If Helium hotspots are securities, it puts all DePINs in danger. We won’t allow that to happen.”
DePINs, or decentralized physical infrastructure networks, are a key innovation that projects like Helium aim to pioneer. Haleem framed the lawsuit as not just a fight for Helium, but for the broader DePIN ecosystem. He also reiterated that Helium had previously clarified its partnerships and implemented stricter protocols to avoid any misuse of logos or brand associations.
What Lies Ahead for Helium and the SEC?
This lawsuit comes amid increasing regulatory scrutiny of the cryptocurrency industry. It follows a series of similar actions by the SEC, including lawsuits against other major crypto firms. For Helium, the stakes are particularly high as the project positions itself as a trailblazer in decentralized infrastructure.
Key questions arise:
- Will this lawsuit set a precedent for other DePIN projects?
- Can Nova Labs demonstrate that its tokens and practices do not fall under securities laws?
- How will the broader crypto community respond to this latest regulatory action?
The case also sheds light on the need for clearer regulatory frameworks in the crypto space. Many in the industry argue that outdated securities laws fail to account for the unique nature of digital assets and decentralized networks.

Leo Frost, the visionary founder and senior content writer at Crypto Quill, brings a wealth of expertise and creativity to the world of cryptocurrency. With a passion for blockchain technology and digital assets, Leo’s insightful articles captivate readers, offering valuable insights into the evolving landscape of crypto. As a seasoned writer and industry pioneer, Leo is committed to delivering engaging content that educates and inspires audiences worldwide.