The Attorney General of New York is suing two crypto firms for their alleged role in a $1 billion pyramid scheme. In a new press release, New York AG Letitia James announces a lawsuit against crypto exchange NovaTech and crypto mining company AWS Mining for allegedly defrauding hundreds of thousands of customers, 11,000 of which […]
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Two people took in $1 billion in crypto deposits and traded $26 million of it, the suit alleges.
New York Attorney General Letitia James has filed a suit alleging that hundreds of thousands of people lost over $1 billion to two crypto firms with overlapping founders. The suit names cryptocurrency trading company NovaTech, its founders Cynthia and Eddy Petion, defunct cryptocurrency mining company AWS Mining and associated individuals and companies as defendants.
According to the suit, more than 11,000 New York state residents, particularly members of the New York Haitian community, lost tens of millions of dollars by investing in NovaTech. The suit alleges that NovaTech is a Ponzi scheme that has used religious appeals to attract customers.
NovaTech also misrepresented its licensing and registration status, the suit alleges. The company was registered in St. Vincent and the Grenadines until that country’s Financial Services Authority canceled it in January 2023. The company collapsed in May 2023.