NEW YORK – Attorney General Letitia James filed a lawsuit against cryptocurrency firms NovaTechFx and AWS Mining Pty Ltd., accusing them of orchestrating illegal pyramid schemes that defrauded investors of over $1 billion. The lawsuit highlights the exploitation of Haitian immigrant communities, with over 11,000 New Yorkers losing tens of millions in these fraudulent schemes.
The complaint names NovaTechFx founders Cynthia and Eddy Petion, and AWS Mining promoters James Corbett, Martin Zizi, and Frantz Ciceron, alleging they lured investors with false promises of high returns, mainly targeting Haitian communities through prayer groups and social media. An investigation revealed that from 2019 to 2023, despite receiving over $1 billion in cryptocurrency deposits, NovaTechFx traded less than $26 million on its platform.
AG James aims to ban the companies and individuals from operating in New York, seeking disgorgement and damages. “These firms preyed on vulnerable communities with the false hope of financial security, only to rob them of their life savings,” James said. “We will continue to crack down on such crypto fraudsters.”
Key Points:
- Fraudulent Promises: Investors were misled with assurances of 15-20% monthly returns and bonuses for recruiting others, but profits were never realized.
- Targeted Victims: The schemes specifically exploited Haitian New Yorkers through culturally tailored advertisements and religious appeals.
- Regulatory Action: The lawsuit seeks to permanently bar the companies from New York and secure restitution for victims.
Background:
From 2019 to 2023, NovaTechFx and AWS Mining convinced thousands to invest by promising high returns from crypto trading and mining, yet failed to deliver. Post AWS Mining’s collapse in 2019, the Petions established NovaTechFx, perpetuating the same fraudulent tactics until its downfall in May 2023.
This action by AG James is part of her broader initiative to protect investors and regulate the cryptocurrency market. Notable past successes include securing $2 billion from Genesis Global Capital and $22 million from KuCoin for regulatory violations.
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