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HomeSecurityNovaTechFx Exposed: NY Attorney General Accuses Company of $1 Billion Pyramid Scheme

NovaTechFx Exposed: NY Attorney General Accuses Company of $1 Billion Pyramid Scheme

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In a shocking turn of events, the New York Attorney General’s office has filed a lawsuit against NovaTechFx, a company once touted as one of the fastest-growing financial platforms on the market. The lawsuit accuses the company and its founders, Cynthia and Eddy Petion, of running a massive pyramid scheme that defrauded thousands of investors worldwide, bringing in over $1 billion.

According to the complaint, NovaTechFx falsely advertised itself as a “registered hedge fund broker” and claimed to have licenses to trade cryptocurrency worldwide. However, the company’s true intentions were far from legitimate. The Petions targeted Haitian immigrants in New York City, recruiting them into the scheme through local prayer circles and claiming that their company was “God’s vision.”

In private messages, Cynthia Petion referred to her investors as a “cult,” stating that they “don’t think” and simply agree with everything she says. The company’s website, which attracted 12.4 million visitors in 2022, was used to recruit investors and facilitate transactions.

The lawsuit alleges that NovaTechFx workers created flyers advertising prayer groups hosted by the company, with slogans like “A team that prays together stays together & grows together.” However, in reality, the company was using these groups to recruit investors and drain their life savings.

The AG’s office claims that of the over $1 billion deposited through the website from 2019 to 2023, NovaTechFx only actually traded about $26 million. The remaining funds were transferred to a payment processor that did not trade cryptocurrency, but merely stored it in NovaTech’s wallets.

Attorney General Leticia James stated, “Thousands of New Yorkers were falsely promised better lives if they simply trusted NovaTech and AWS Mining with their money, but it was all a lie. These cryptocurrency companies targeted immigrant and religious communities with promises of financial freedom but instead stole their money and drained their life savings.”

The lawsuit seeks to hold the Petions and NovaTechFx accountable for their fraudulent activities. The company’s website has since displayed a message claiming a “data breach” and temporarily taking down its site. NovaTechFx has not responded to requests for comment.

The case highlights the importance of vigilance in the financial industry and the need for regulators to protect investors from fraudulent schemes. As one local Haitian nonprofit executive director, Renold Julien, stated, “I thank Attorney General James for taking this action to protect all New Yorkers. Konbit Neg Lakay is looking for full restitution.”

Source: Crypto Mining News - Bing

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