As a seasoned crypto investor who’s weathered more than a few market storms, I find it both disheartening and infuriating to see yet another instance of blatant fraud like NovaTech. Having lost a substantial portion of my savings to similar schemes in the past, I can’t help but feel a sense of déjà vu when I hear about these so-called “registered hedge funds” promising unrealistic returns.
The U.S. Securities and Exchange Commission has zeroed in on a $650 million cryptocurrency pyramid scheme called NovaTech.
The business, based in Saint Vincent and the Grenadines, collected resources from investors for the purpose of trading them to make earnings. NovaTech proudly announced it could consistently deliver returns of approximately 3% per day. Furthermore, it marketed itself as a legally recognized investment fund.
Contrarily to what was suggested, the company in question, allegedly fraudulent, did not trade a large portion of its clients’ assets, but rather suffered significant losses instead of making profits. The influx of new investments from unsuspecting victims became their primary source of income, as stated in the SEC lawsuit. Remarkably, they were able to attract around 200,000 investors.
As a seasoned investor with over two decades of experience in the financial industry, I find it disheartening and infuriating to come across schemes like the one run by Cynthia and Eddy Petion. Their alleged actions are not only unethical but also illegal. It is a sad reality that some individuals will stop at nothing to exploit the trust of unsuspecting investors for their own personal gain.
By May 2023, the project had concluded due to many investors encountering difficulties in withdrawing their investments. Subsequently, NovaTech discontinued its U.S. operations, halting any possibility of returning investor funds.
Cynthia Petion argued that the funds of the customers were lost due to a data breach.
Earlier this year, the company also faced a lawsuit from New York Attorney General Letitia James.
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2024-08-13 00:07