Recently, there has been a significant development in the cryptocurrency world as the Securities and Exchange Commission (SEC) has taken legal action against Nova Labs Inc, the company responsible for the popular cryptocurrency Helium (HNT) and three other related altcoins.
The SEC’s complaint alleges that Nova Labs has been involved in the sale of investment contracts without proper registration, as well as making misleading statements about their crypto asset offerings and company stock.
According to the SEC’s claims, Nova Labs has been raising capital from investors since April 2019 through the sale of electronic devices called “Hotspot” and a rewards program called the Discovery Mapping Program. These programs offer returns in the form of three cryptocurrencies linked to Nova Labs: Helium Network Token (HNT), Helium Mobile Network Token (MOBILE), and Helium IoT Network Token (IOT).
- Helium Network Token (HNT)
- Helium Mobile Network Token (MOBILE)
- Helium IoT Network Token (IOT)
The SEC contends that these activities constitute unregistered securities offerings, violating federal securities laws that mandate issuers to disclose key financial and operational information to safeguard investors’ interests.
Furthermore, the SEC asserts that Nova Labs misled investors by providing false information regarding the investment contracts and the company’s stock.
It is important to note that this information is not intended as investment advice.