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SEC's Lawsuit Against Crypto Company Directly Involves Three Altcoins - Coin Bulletin
The U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Nova Labs.
Nova Labs is known as the founder of the Helium Network, and the lawsuit is based on the allegation that the company illegally and unregisteredly offered investment contracts related to three crypto assets.
According to the SEC's statement, Nova Labs has raised millions of dollars since 2019 through devices called 'Hotspot' and a reward program. These devices mine Helium Network Token (HNT), Helium Mobile Token (MOBILE), and Helium IoT Token (IOT), which are crypto assets of the Helium ecosystem.
Alleged Illegal Sales
SEC stated that Nova Labs violated the registration requirements of federal securities laws. It is alleged that investors were not provided with sufficient information about the financial situation and business model of the projects. It is stated that this situation hinders investors from making informed decisions.
In addition, it is also stated that Nova Labs distributes MOBILE tokens through the 'Discovery Mapping Program'. The SEC claims that these programs should be considered investment contracts and are illegal because they are not registered.
Misleading Statements
According to the SEC's allegations, Nova Labs misled investors with deceptive and incomplete information. The accuracy of the information provided by the company regarding investment contracts and shares is being questioned. This situation is considered a serious violation that could cause investors to suffer losses.
How Nova Labs will respond to this lawsuit and the future of the Helium Network are closely monitored in the industry. The SEC's strict regulations on crypto projects indicate that there will be more regulatory pressure in the market.