**SEC Charges NovaTech in $650 Million Crypto Scam**

The U.S. Securities and Exchange Commission (SEC) has charged NovaTech and its founders, Cynthia and Eddy Petion, with orchestrating a $650 million cryptocurrency scam. The company allegedly deceived over 200,000 investors with promises of high returns from crypto and forex trading, which were never realized. This action underscores the increasing regulatory scrutiny in the cryptocurrency market to protect investors from fraudulent activities.

**NovaTech’s Alleged Pyramid Scheme**

The SEC claims NovaTech operated a pyramid scheme, redirecting funds to pay existing investors and promoters rather than investing in crypto and forex markets as promised. The scheme, which spanned several years, left many investors unable to withdraw their funds, resulting in substantial financial losses.

**SEC Targets Deceptive Tactics**

In addition to the founders, the SEC has charged several promoters, including Martin Zizi, Dapilinu Dunbar, and James Corbett, for their roles in spreading the scam. These individuals targeted vulnerable communities with false promises of financial freedom, exacerbating the impact of the fraud.

**Impact on Investors**

NovaTech’s collapse in May 2023 devastated its investors, most of whom were unable to retrieve their investments. The SEC’s investigation revealed that only a small portion of the funds raised were used for trading, with the majority misappropriated for personal gain.

**Regulatory Crackdown**

The SEC’s action against NovaTech is part of a broader effort to combat fraudulent schemes in the cryptocurrency space. This case highlights the importance of due diligence and vigilant oversight to protect investors in the rapidly evolving world of cryptocurrency.