Solana-based Helium Network is gearing up to contention a suit filed against it by the US Securities and Exchange Commission (SEC).
On Jan. 17, the SEC announced ineligible enactment against Nova Labs, the institution down the Helium Network.
The regulator claims Nova Labs violated securities laws by offering unregistered securities done its products and services. These see “Hotspots,” devices utilized for mining Helium’s HNT tokens, and the “Discovery Mapping” program, which rewards users with tokens successful speech for their backstage data.
The SEC besides accuses Nova Labs of misleading investors astir partnerships with well-known companies similar Lime, Nestlé, and Salesforce.
According to the complaint, Nova Labs suggested these firms were progressive users of the Helium network, though the SEC alleges otherwise.
Helium’s response
On Jan. 19, Amir Haleem, CEO of Nova Labs, expressed assurance successful the company’s quality to contention the claims.
He called the suit unfounded and portion of a larger signifier of enforcement targeting blockchain innovation successful the US.
Haleem criticized the SEC for what helium described arsenic shifting and inconsistent arguments implicit the past 2 years. He noted that Helium has cooperated extensively with the SEC, adjacent providing grounds of engagement with the companies mentioned successful the complaint.
Haleem wrote:
“The icing connected the barroom is that we someway defrauded our Series D investors, contempt virtually each of them telling the SEC that nary of that happened. we’ve addressed this successful the past, and person worked with each institution connected Helium mentioned successful the complaint. seemingly written testimonials from the companies themselves are insufficient for Gensler and his goons.”
He warned that labeling Helium Hotspots arsenic securities could person far-reaching consequences for Decentralized Physical Infrastructure Networks (DePIN). According to Haleem, specified a precedent would deter innovation and make further risks for akin blockchain projects.
Haleem concluded:
“We’ll support ourselves vigorously and proceed the Gensler SEC’s way grounds of miserable losses and outright lies. not conscionable for us, but for each DePIN projects. if Helium hotspots are securities, it puts each DePINs successful danger. we won’t let that to happen.”
The station Helium fights backmost against SEC allegations implicit unregistered securities appeared archetypal connected CryptoSlate.