novatech

The New York Attorney General is aggressively pursuing the founders of the NovaTech and AWS Mining fraud schemes. By securing initial settlements and demanding over one billion dollars in additional payments, regulators are sending a clear message to fraudulent crypto operations. This crackdown highlights the increasing legal risks for bad actors operating within the US jurisdiction and serves as a warning to investors about high risk schemes.

#NovaTech #CryptoRegulation ⠀

The scam’s aftermath: staggering figures.

The New York Attorney General has asked a court to order the bankrupt founder of NovaTech and affiliated parties to pay approximately $1.37 billion in restitution, including about $1.13 billion in investor funds and another $230 million in interest. A scheme built around a dual pitch of forex and crypto has ultimately ended in civil recovery.

Promises of high returns and multi-level referrals—schemes like these keep blowing up. Compliance and transparency around custody remain the only hard indicators retail investors can screen for in advance.

#监管 #安全 #NovaTech #Crypto

New York’s attorney general is asking a court for $1.37 billion: NovaTech’s founders fled, but they still have to answer for the money.

On October 22, New York Attorney General James announced that four NovaTech promoters had reached a settlement, agreeing to pay nearly $5.98 million in total and accept lifetime bans from the securities, commodities, and crypto industries.
That same day, prosecutors filed another motion asking the court to order founders Cynthia and Eddy Petion to pay about $1.37 billion: $1.1345 billion in principal and $232.5 million in interest.
Prosecutors’ records show that from August 2019 to May 2023, of the $1.1605 billion in crypto deposited by investors, only $25.99 million was sent to the trading platform B2Broker—and it lost $18.19 million.

At least $134.5 million went into the founders’ own wallets.

I think the most disturbing thing about this case isn’t the amount, but that almost none of the money was ever traded: the so-called 2% to 4% weekly returns were basically paid to earlier investors with money from new ones.

I see this case as a sign of regulators pursuing fugitives, not as a signal that victims will get their money back: the founders have fled the U.S., and how much they’ll be ordered to pay—and how much will actually be recovered—are both unknown.
If the court later orders them to pay the full amount, or a substantial amount of assets is recovered, this assessment will no longer hold.

What do you think will happen with these astronomical claims against founders who fled—will most of the money be recovered, or will the court just hand down a big number that looks good on paper?

$BTC $ETH $SOL
#NovaTech #CryptoRegulation

Raised $1.16 billion, with only $26 million in genuine trades — New York’s attorney general is suing NovaTech’s founder couple, seeking $1.37 billion ($1.13 billion in restitution + $230 million in interest). From 2019 to 2023, they claimed to engage in “crypto trading,” but 97% of the money never entered the market. The scheme is suspected of being a Ponzi scheme. Four promoters agreed to pay $6 million in penalties and are barred from the industry. What they took wasn’t market gains, but trust.
Have you ever fallen for a “high-yield investment” trap? Share your story in the comments.

$BTC $ETH $USDT
#NovaTech #庞氏骗局 #CryptoRegulation
(Source: Coinfomania)
⚠️Risk warning: The above is shared for informational purposes only and does not constitute investment advice. Investing involves risk; please exercise caution.

New York seeks $1.3 billion from NovaTech after couple flees to the U.S.

- New York wants to collect $1.3 billion from NovaTech’s founders
- The NovaTech platform received $1.16 billion
- The platform traded only a small fraction of the total capital
#BinanceSquare #CryptoNews #NovaTech #Web3 #Blockchain

$btc $eth

vlikevn Titanbot

Source: The Block

Came across this post from the New York Attorney General’s Office: Four key promoters of the NovaTech / AWS Mining crypto pyramid scheme will pay back nearly $6 million combined and are permanently barred from the securities, commodities, and crypto industries.

The key details: Attorney General Letitia James announced the settlement on October 22 — about $2.9 million from Martin Zizi, about $2.05 million from Frantz Ciceron, $750,000 from James Corbett, and about $276,000 from Ricardo Roy Sr. The case alleges they targeted Haitian and other immigrant communities, using promises of high returns to recruit people through prayer groups, social media, and WhatsApp. More than 11,000 New York investors were affected, losing tens of millions of dollars. Between August 2019 and April 2023, NovaTech received more than $1 billion in equivalent crypto deposits, but traded less than $26 million on the platform before collapsing in May 2023. That same day, the state also asked the court to order founders Cynthia and Eddy Petion to pay about $1.3 billion more; they have fled after a default judgment was entered against them.

Be careful of schemes that recruit through prayer groups and pump things on WhatsApp.

#加密诈骗 #纽约州 #NovaTech