#NewYork #CryptoFraud #NovaTechFx #AWSMining #LetitiaJames #Cryptocurrency #InvestmentScams #LegalAction
In a significant move against fraudulent activities within the cryptocurrency sphere, New York Attorney General Letitia James has launched a lawsuit against two key players in the crypto industry: NovaTechFx, a cryptocurrency trading company, and AWS Mining, a digital asset mining company. This lawsuit addresses the companies’ involvement in orchestrating illegal pyramid schemes which have effectively defrauded over 11,000 individuals and countless investors, culminating in losses that surpass a staggering one billion dollars in cryptocurrency. The lawsuit delineates the roles of NovaTechFx, its founders Cynthia and Eddy Petion, and AWS Mining, in engaging in operations classified as illegal pyramid schemes, promising investors unrealistically high returns on their investments.
The lawsuit highlights how these companies exploited vulnerable communities, particularly focusing on immigrant sectors, including the Haitian community in New York. Investors were drawn in through various mediums, such as prayer groups, social media, and WhatsApp chats, with promises of financial freedom and prosperity. However, the grim reality unfolded as these avowals were far from realized. An investigation by the Office of the Attorney General uncovered that between 2019 and 2023, investors deposited over a billion dollars in cryptocurrency into NovaTech. Astonishingly, less than $26 million of those funds were actually dispensed for trading on NovaTech’s cryptocurrency platform, highlighting the disparity between the company’s operations and its claims.
The lawsuit also sheds light on the aftermath of such fraudulent schemes, emphasizing the devastating impact on the immigrant and religious communities that were the schemes’ main targets. The scheme promised monthly returns of 15 to 20 percent and bonuses for enlisting new investors, exploiting the hopes of individuals aiming for financial stability. Following the failure and eventual collapse of AWS Mining in 2019, the Petions initiated NovaTechFx, perpetuating a similar scheme under a new guise, thereby continuing to ensnare more investors.
Attorney General James’s legal action seeks not only to hold these entities accountable by barring AWS Mining, NovaTech, and their founders from engaging in any securities or commodities business in New York but also aims for disgorgement and damages to reimburse the defrauded investors. The case brings to the forefront the urgent need for vigilance and protective measures for vulnerable communities against such predatorial financial schemes, with Renold Julien, Executive Director of Konbit Neg Lakay, lauding the effort. This lawsuit marks a critical step towards justice for the numerous individuals and families whose dream of financial freedom was exploited, resonating as a stern warning against deception in the increasingly scrutinized world of cryptocurrency.
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