Amir Haleem, the CEO of Nova Labs, has revealed that the Solana-based Helium Network is preparing to contest a lawsuit filed by the U.S. Securities and Exchange Commission (SEC) on January 17 against its managing company, Nova Labs.
Haleem expressed confidence in Helium’s ability to challenge the SEC’s unjustified lawsuit, viewing it as part of a broader trend against blockchain innovation in the U.S. He criticized the SEC for inconsistent arguments over the past two years and noted Helium’s full cooperation with the agency, providing evidence of engagement with the implicated companies.
“…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’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… ”
He stated.
The CEO warned that classifying Helium Hotspots as securities could stifle innovation and threaten Decentralized Physical Infrastructure Networks (DePIN). He criticized the SEC under Chairman Gary Gensler and expressed commitment to defend the company, emphasizing that this classification could jeopardize all DePIN initiatives.
The SEC alleges that Nova Labs violated securities laws by offering unregistered products, including “Hotspots” for mining Helium’s HNT tokens and a “Discovery Mapping” program that rewards users with tokens. They also claim Nova Labs misled investors by falsely suggesting partnerships with companies like Lime, Nestlé, and Salesforce, presenting them as active users of the Helium network.
Similarly, the SEC has filed an appeal with the U.S. Court of Appeals for the 2nd Circuit to overturn a ruling stating that XRP is not a security for retail investors. They argue that both retail and institutional sales of XRP should be considered investment contracts under the Howey test, claiming Ripple’s $2 billion XRP sales violated federal securities laws.
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