The Securities and Exchange Commission has taken legal action against Nova Labs, accusing the company of engaging in illegal unregistered securities offerings and making deceptive statements about its partnerships to deceive investors.
The SEC’s complaint reveals that Nova Labs has been selling unregistered investment contracts without proper registration since April 2019.
These contracts involve two main products: “Hotspots,” which are electronic devices that mine three different crypto assets (HNT, MOBILE, and IOT tokens) belonging to Nova Labs, and a “Discovery Mapping Program,” which rewards users with MOBILE tokens for sharing network data.
The complaint also alleges that Nova Labs made false promises to investors, claiming that their purchase of Hotspots and participation in the Discovery Mapping Program would result in returns through the company’s efforts to build and expand a wireless network.
