$1 billion cryptocurrency scam targeting immigrants being sued by New York

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$1 billion cryptocurrency scam targeting immigrants being sued by New York
$1 billion cryptocurrency scam targeting immigrants being sued by New York

James argued in a lawsuit filed in a state court in Manhattan that only $26 million in cryptocurrency was used for trading.

James claimed that although cryptocurrency investors, lured by weekly returns, sent NovaTech Ltd. more than $1 billion over nearly four years until its May 2023 collapse, only $26 million was used for trading in a lawsuit filed on Thursday in a state court in Manhattan.

She added that more than two years before its collapse in 2019, AWS Mining Pty Ltd made fraudulent claims that it could treble investors’ money in 15 months through mining, a process where computers validate bitcoin transactions and produce new cryptocurrency. It is said that victims were singled out via social media, WhatsApp, and prayer groups—sometimes using the Creole language.

The co-founders of NovaTech, Cynthia and Eddy Petion, a married couple who purportedly reside in Panama, are among the 12 accused. James stated While publicly posing as the “Reverend CEO” and declaring that NovaTech was God’s vision, Cynthia Petion actually went by the nickname “Zookeeper” and disparaged her investors, calling them a “cult” because “they just agree with everything you say.” It took some time to get the Petions’, NovaTech AWS’s, and their attorneys’ contact information.

According to James, the two scams were pyramid schemes, in which businesses offer bonuses in exchange for bringing in new investors. According to her, NovaTech was a Ponzi scam as well, paying out incentives and “profits” to older investors based on the deposits made by younger ones.

With promises of financial freedom, these cryptocurrency businesses specifically targeted immigrant and religious communities, but James claimed in a statement that they instead took their money and depleted their life savings. “We are seeing the real dangers of unregulated cryptocurrency platforms with schemes like these.” The case demands civil damages, reimbursement to the victims, and a prohibition on the securities.

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