SEC sues Nova Labs for alleged fraud and registration violations
The US Securities and Exchange Commission accuses Nova Labs of, Inc. ("Nova Labs") is suspected of issuing cryptocurrency assets as securities without registration and deceiving investors. According to the SEC complaint, from April 2019 to present, Nova Labs has made unregistered securities offers and sales while providing and selling electronic devices called "Hotspots" (used to mine Nova Labs' encrypted assets) and "Discovery Mapping" (a program that allows users to exchange their private data for Nova Labs' encrypted assets). The SEC is seeking a permanent injunction, confiscation of illegal gains, payment of pre judgment interest, and civil penalties against Nova Labs.