Helium Network Challenges SEC Lawsuit: Founder Labels Claims Baseless Amid HNT Token Decline

Helium Network Vows to Fight SEC Lawsuit, Founder Calls Allegations Baseless
Helium Network, a trailblazer in the decentralized physical infrastructure (DePIN) space, is challenging a recent lawsuit from the Securities and Exchange Commission (SEC). Founder Amir Haleem dismisses the SEC’s claims as part of a faltering anti-crypto campaign, while the HNT token faces a steep decline.
- SEC lawsuit targets Helium and Nova Labs for unregistered securities
- Amir Haleem declares SEC allegations baseless
- HNT token experiences significant value drop
The SEC filed its lawsuit on January 17, targeting Helium and its developer, Nova Labs, for allegedly offering unregistered securities through “Hotspot” devices and the “Discovery Mapping” program. This move is believed to be Gary Gensler’s last regulatory salvo before leaving his position as SEC chair. DePIN, short for decentralized physical infrastructure, refers to networks that provide physical services like wireless internet without centralized control. In Helium’s case, “Hotspot” devices are used to provide wireless internet connectivity, while the “Discovery Mapping” program maps the coverage of these hotspots.
Amir Haleem, undeterred by the accusations, has been outspoken in his defense:
The SEC has wasted two years of our time and millions of our dollars pursuing any claim they could think of. First, it was that the coverage map was fake, then that the mobile communication devices weren’t really cellular, then that the IoT hotspots didn’t really work, literally chasing anything that might stick.
Haleem argues that the SEC’s claims are not only baseless but also absurdly categorize wireless access points as securities and criminalize data sharing. He refutes the SEC’s assertions by highlighting Helium’s collaborations with major companies like Lime, Salesforce, and Nestle, which directly contradict the SEC’s accusations of misrepresentation.
We’ve addressed this in the past, and have worked with every company on Helium mentioned in the complaint. Apparently, written testimonials from the companies themselves are insufficient for Gensler and his goons.
In response to these allegations, the crypto community has rallied behind Helium, seeing the lawsuit as yet another case of regulatory overreach. Polygon Labs CEO Marc Boiron has publicly supported Helium’s combative stance against the SEC. There’s a prevailing sentiment that the case might be dropped or settled under new SEC leadership, reflecting a hope for a more crypto-friendly regulatory environment.
Amidst this legal battle, the HNT token, Helium’s native cryptocurrency, has seen a sharp decline. In the last 24 hours alone, it dropped 17%, and over the course of 2025, it has fallen nearly 30%. This downturn is not isolated to HNT, as the broader DePIN sector has experienced an average decline of over 4%.
Helium’s fight against the SEC is more than just a legal battle; it’s a litmus test for the future of decentralized technologies and their place within existing regulatory frameworks. As the industry watches closely, the outcome could set a precedent for how DePIN networks and other blockchain-based innovations are treated under securities law.
Broader Implications
If Helium wins this case, it could set a precedent that protects other DePIN networks from similar regulatory overreach. This lawsuit highlights the ongoing tension between innovative decentralized technologies and traditional regulatory frameworks, raising questions about whether the SEC’s approach is stifling innovation or necessary for investor protection.
While Haleem dismisses the SEC’s claims as baseless, some legal experts argue that the SEC has a valid case based on the nature of the Hotspot rewards. This debate underscores the complexity of applying existing securities laws to new technologies.
Key Takeaways and Questions
- What is the SEC’s lawsuit against Helium about?
The SEC alleges that Helium and Nova Labs offered unregistered securities through “Hotspot” devices and the “Discovery Mapping” program. - How has Helium and its founder responded to the SEC’s allegations?
Helium founder Amir Haleem has denied the allegations, calling them baseless and part of a failed anti-crypto campaign by the SEC. - What impact has the SEC lawsuit had on the HNT token?
The HNT token has experienced a significant decline, dropping 17% in the last 24 hours and nearly 30% in 2025 following the lawsuit announcement. - What is the crypto community’s stance on Helium’s legal battle with the SEC?
The crypto community largely supports Helium, with some stakeholders hopeful that the case will be dropped or settled under new SEC leadership. - What companies did Helium claim to have worked with, as mentioned in the SEC’s lawsuit?
Helium claims to have worked with Lime, Salesforce, and Nestle, refuting SEC allegations of misrepresentation.