Share
The Securities and Exchange Commission has filed charges against Nova Labs for allegedly conducting unregistered securities offerings and making false statements about business partnerships to mislead investors.
According to the SEC’s complaint, Nova Labs has been selling unregistered investment contracts since April 2019 through two main products: “Hotspots” — electronic devices that mine three different Nova Labs crypto assets (HNT, MOBILE, and IOT tokens), and a “Discovery Mapping Program” that rewards users with MOBILE tokens for providing network data.
The complaint alleges that Nova Labs promised investors their Hotspots and participation in the Discovery Mapping Program would generate returns through the company’s efforts to build and expand a wireless network. Nova Labs claimed this would increase demand and value for their crypto tokens, leading to profits for investors.
You might also like: TRUMP meme coin pushes Solana DEX volume, SOL price to all-time high
In a serious allegation of fraud, the SEC states Nova Labs falsely told investors that major companies, including Nestlé, Salesforce, and Lime, were actively using its wireless network.
The complaint reveals that when Nestlé and Lime discovered Nova Labs was publicly claiming these nonexistent relationships, they sent cease-and-desist letters to the company.
The SEC charges that these false partnership claims were material to investors’...
It’s that time of the year again when taxpayers across the country start filing their Income Tax Returns (ITR). But hold on. If you’re all set to hit submit, take a moment and double-check your re...