According to Odaily Planet Daily, New York Attorney General Letitia James has filed a lawsuit against two crypto companies in the state, NovaTech and AWS Mining, accused of defrauding hundreds of thousands of investors, involving more than $1 billion. The two companies were accused of "participating in illegal pyramid schemes" and stealing more than $1 billion in cryptocurrencies from investors, including 11,000 New Yorkers.
Letitia James said that the two companies would be banned from doing business in New York and vowed to crack down on cryptocurrency scammers. AWS Mining and its promoters had promised to provide investors with high returns through cryptocurrency mining operations, but in fact the company could not maintain the promised returns for a long time and eventually collapsed in 2019. After that, the Petions launched NovaTech and continued to use similar strategies to recruit customers, but investor profits were actually generated by new investor funds. Prosecutors revealed that the platform actually processed only $26 million in cryptocurrency transactions between 2019 and 2023.
