As a long-time crypto investor, I’ve seen my fair share of scams and fraudulent schemes in the digital currency space. However, the recent lawsuit against NovaTech Ltd and AWS Mining Pty Ltd uncovered by New York Attorney General Letitia James has left me appalled and disheartened.
New York’s Attorney General, Letitia James, has launched a lawsuit against NovaTech Ltd and AWS Mining Pty Ltd, as well as their associates, for an alleged crypto scam worth over $1 billion. The complaint, submitted in a Manhattan court, alleges that these companies manipulated the religious beliefs of their investors to carry out one of the biggest frauds in the history of digital currencies, primarily targeting immigrant and religious communities.
Crypto Firms Misuse Faith for Financial Scams
NovaTech Ltd, which faced intense scrutiny following its collapse in 2023, is believed to have raised over a billion dollars from investors within just under four years. Yet, only $26 million of these funds were used for trading purposes. AWS Mining Pty Ltd, another company under investigation, made similar promises to triple investors’ contributions through cryptocurrency mining – a pledge that ultimately led to its demise in 2019. Both companies allegedly employed various channels, including social media platforms, prayer groups, and WhatsApp communications, to effectively target Haitian and other immigrant communities using the Creole language.
Additionally, it is said that NovaTech’s co-founders, Cynthia and Eddy Petion, live in Panama. Cynthia Petion, who refers to herself as the “CEO Reverend,” is reportedly responsible for presenting the company as a divine vision, while privately mocking herself as the “Zookeeper” and belittling her investors as part of a fervent fanbase. These disclosures highlight the underhanded methods employed to draw in unwitting participants into this scheme.
Crypto Scam Targets Immigrant Communities’ Savings
As a researcher studying the case, I’ve uncovered some alarming details about NovaTech and AWS Mining. Based on the available information from the lawsuit, it appears that these companies functioned as textbook pyramid schemes, alluring participants with incentives for bringing in new investors. Furthermore, there are allegations that NovaTech was involved in a Ponzi scheme, utilizing fresh investments to finance supposed “profits” and bonuses for earlier investors. This financially unsound approach ultimately resulted in the downfall of both businesses, leaving countless investors empty-handed and devastated by the loss of their hard-earned savings.
James, the Attorney General, strongly criticized the behavior of these companies, highlighting the potential risks associated with unchecked cryptocurrency exchanges.
“James pointed out that certain cryptocurrency businesses lured immigrants and religious groups with enticing pitches of financial independence, only to end up taking their hard-earned money and emptying their life savings instead.”
As a researcher, I would phrase it this way: I’m currently working on a project where we are pursuing compensation for the affected parties, in addition to filing civil lawsuits. Furthermore, we aim to secure a comprehensive ban from the securities industry for those involved in the wrongdoing.
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2024-06-07 00:36