According to CryptoPotato, New York Attorney General Letitia James has initiated legal action against NovaTechFx, a cryptocurrency trading firm, and AWS Mining, a digital asset mining company. The lawsuit accuses the companies of orchestrating illegal pyramid schemes that defrauded over 11,000 individuals and numerous investors, leading to losses surpassing a billion dollars in cryptocurrency.
The lawsuit primarily targets NovaTechFx, its founders Cynthia and Eddy Petion, and AWS Mining for setting up illegal pyramid schemes that enticed investors with the promise of significant returns on investments. The alleged victims of these schemes were predominantly immigrant communities, particularly Haitian New Yorkers, who were lured through various channels such as prayer groups, social media platforms, and WhatsApp group chats.
Despite promises of financial prosperity, investors did not receive the promised profits. An investigation by the Office of the Attorney General revealed that between 2019 and 2023, investors deposited over a billion dollars worth of cryptocurrency into NovaTech. However, only a fraction, less than $26 million, was actually traded on NovaTech’s cryptocurrency trading platform during this period.
The lawsuit also alleges that AWS Mining operated a deceptive scheme, promising investors monthly returns ranging from 15 to 20 percent and extravagant bonuses for recruiting new investors. However, the company failed to generate sufficient returns to fulfill these promises, resulting in losses for investors when it collapsed in 2019.
The legal action seeks to prohibit AWS Mining, NovaTech, and their founders from conducting any business related to securities or commodities in New York. James also pursues disgorgement and damages to compensate the victims. Following the collapse of AWS Mining, Cynthia and Eddy Petion launched NovaTechFx, and continued their fraudulent activities by enticing new investors with similar promises of high returns and recruitment bonuses.