Real estate startup Boxabl acknowledged in a filing last week that it is the subject of an investigation by the Securities and Exchange Commission. The acknowledgment comes on the heels of reports from Business Insider about the inquiry earlier this month.

"The company is aware that it is the subject of inquiries from the Securities and Exchange Commission," Boxabl said in a financial statement filed with the agency.

Boxabl is a manufacturer of accessory dwelling units that has raised more than $150M since 2020, mostly via crowdfunding.

The SEC has already issued two subpoenas to people familiar with the company and its operations and has spoken with others, Business Insider reports. The people haven't been identified, as the inquiry is confidential.

The SEC's focus isn't clear. The agency hasn't accused the company of any wrongdoing, and inquiries by the agency don't always lead to enforcement actions.

Crowdfunding, the main source of Boxabl's financing, created a splash in the real estate industry in the mid-2010s as a way for smaller investors to get involved in property. But the industry has faced challenges in recent months in the wake of a scandal involving leading platform Crowdstreet and Nightingale Investments, in which millions were allegedly misappropriated.

North Las Vegas-based Boxabl didn't immediately respond to a request from Bisnow for further comment.

Boxabl's first product is Casita, a 361 SF ADU with a kitchen, bathroom and 9.5-foot ceilings, among other features. The company estimates that Casitas can sell for a retail price of $60K, or about $166 per SF, with shipping and development of a site adding to that price.

The company says it has a waitlist of 170,000 for the units and has received more than $4.2M in deposits. Installation of the units hasn't always gone smoothly, however. More than 150 units installed at Guantánamo Bay, Cuba, for the military in 2021 and 2022 reportedly leaked, and Boxabl's installation of units for an Arizona mining company ran into permitting issues.