The U.S. SEC sues Nova Labs for fraud and registration violations

ChainCatcher News, the U.S. Securities and Exchange Commission has charged Nova Labs, Inc. ("Nova Labs") with allegedly issuing cryptocurrency assets as securities without registration and deceiving investors.

According to the SEC's complaint, from April 2019 to the present, Nova Labs conducted unregistered securities offerings and sales while providing and selling electronic devices called "Hotspots" (used for mining Nova Labs' cryptocurrency) and "Discovery Mapping" (a program that allows users to exchange their private data for Nova Labs' cryptocurrency).

The SEC seeks to impose a permanent injunction against Nova Labs, confiscate illegal proceeds, pay pre-judgment interest, and impose civil penalties.