Lawsuit Filed Against NovaTechFx and AWS Mining
The New York Attorney General, Letitia James, has brought a legal action against cryptocurrency trading entities NovaTechFx and AWS Mining Pty Ltd., and their founders Cynthia and Eddy Petion. The lawsuit alleges that these firms engaged in illicit pyramid schemes that defrauded more than 11,000 individuals, resulting in losses exceeding $1 billion.
Accusations of Targeting Immigrant Communities
The press statement from the NYAG's office asserts that NovaTech and AWS Mining specifically aimed their schemes at immigrant communities, including Haitian New Yorkers. The companies utilized methods such as prayer groups, social media platforms, and WhatsApp to lure unsuspecting individuals with false promises of substantial investment returns. Allegations suggest that these communities were exploited under the guise of financial empowerment and lucrative investment opportunities that were never realized.
Findings of the Investigation
An inquiry conducted by the Office of the Attorney General revealed that between 2019 and 2023, investors funneled more than $1 billion into NovaTech, yet only a fraction, approximately $26 million, was utilized for trading purposes. The lawsuit contends that the bulk of the funds were not invested as advertised, signifying a deception of monumental scale.
"Thousands of individuals in New York were enticed with the illusion of a brighter future by trusting NovaTech and AWS Mining with their assets. Unfortunately, these cryptocurrency enterprises preyed on immigrant and religious groups, offering false hopes of financial liberation while ultimately absconding with their funds and jeopardizing their financial security." – Letitia James
Collapse of AWS Mining and Deceptive Practices by NovaTech
The legal filing outlines the downfall of AWS Mining, which purportedly conducted cryptocurrency mining to yield considerable profits but ultimately failed to deliver the promised returns, leading to its collapse in 2019. Subsequently, the Petions initiated NovaTech, attracting fresh investors with similar assurances of lucrative gains.
NovaTech portrayed itself as a licensed hedge fund broker authorized for cryptocurrency trading activities in the United States. However, the lawsuit alleges that the company misrepresented its activities, falsified weekly earnings, and relied on inflows from new investors to pay existing ones. NovaTech faced a collapse in May 2023, leaving a vast number of investors unable to retrieve their cryptocurrency holdings.
Legal Remedies Sought
Accusing the Petions of violating the Martin Act, Attorney General James aims to prohibit AWS Mining, NovaTech, and their founders from engaging in business operations within New York. The lawsuit also pursues the disgorgement of profits and compensation for the impacted investors, advocating for justice for those who suffered financial losses in the purported schemes.
