NovaTech Faces SEC Charges in $650 Million Crypto Fraud
NovaTech, a cryptocurrency investment platform, is facing serious fraud charges from the SEC, causing a significant stir in the crypto market.
The SEC has revealed that NovaTech Ltd. perpetrated a $650 million fraud, impacting over 200,000 investors worldwide, with many victims coming from the Haitian-American community.
Cynthia and Eddy Petion, the owners of NovaTech, have been charged by the SEC. Between 2019 and 2023, they operated a multi-level marketing (MLM) crypto investment scheme that promised high returns.
Eric Werner of the SEC commented, “NovaTech and the Petions caused untold losses to tens of thousands of victims around the world.”
READ MORE: Tether Denies Celsius Lawsuit Claims, Calls It a “Shakedown”
Investors were assured that their capital was secure and that they would see quick profits, but most of the funds were used to pay earlier investors in a manner resembling a Ponzi scheme.
The SEC has filed charges in Florida, seeking penalties and the return of ill-gotten gains. Additionally, New York’s Attorney General initiated a similar lawsuit in June.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
