The SEC has accused Nova Labs Inc. of fraud and violating securities laws related to its crypto operations. The complaint, filed on January 17th in the Southern District of New York, alleges that the company conducted unregistered offerings of crypto assets and deceived investors.
The SEC claims that Nova Labs’ activities since April 2019 involved offering “Hotspots” that mined crypto assets and promoting “Discovery Mapping” where users could trade private data for digital tokens.
However, the SEC states that these offerings should have been registered as securities, and Nova Labs failed to comply with legal requirements.
The company is also accused of providing false and misleading information to potential investors, including claims that major corporations like Lime, Nestlé, and Salesforce were using or relying on their wireless network.
The SEC asserts that these claims were false and could mislead investors, as these companies were not actually using Nova Labs’ network.
