New York Attorney General Letitia James has taken legal action against cryptocurrency trading platform NovaTechFx and cryptocurrency mining company AWS Mining Pty Ltd. The lawsuit alleges fraudulent activities that affected over 11,000 investors, including immigrant and religious communities.
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A report from Business Insider explains that NovaTechFx and AWS Mining were accused of operating illegal pyramid schemes. They promised high returns on investments but failed to deliver. The victims, many of whom were Haitian New Yorkers, lost over a billion dollars’ worth of cryptocurrency. The companies specifically targeted their victims through prayer groups, social media, and WhatsApp chats.
Unraveling the Scheme
The investigation revealed that only a fraction of the deposited cryptocurrency was actually traded on NovaTechFx’s platform. The rest seemingly vanished into thin air. NovaTechFx allegedly misled investors by inflating trading volumes and providing false information about their operations. The lawsuit highlights the risks associated with unregulated crypto platforms and underscores the need for consumer protection efforts.
Recent revelations shed light on the inner workings of NovaTechFx. Founder Cynthia Petion rebranded herself as the “Reverend CEO,” positioning the company as “God’s vision.” However, private messages revealed a different story. She referred to her investors as a “cult.” NovaTechFx workers even created flyers advertising prayer groups hosted by the company, targeting unsuspecting victims.
False Advertising and Misrepresentation
NovaTechFx falsely advertised itself as a “registered hedge fund broker” and claimed to have licenses for global cryptocurrency trading. These claims were incorrect and misled investors into believing they were dealing with a legitimate financial institution.
After receiving payments from investors (intended for trading), NovaTechFx transferred the funds to a payment processor that did not actually trade cryptocurrency. Instead, the funds were stored in NovaTechFx’s wallets, further perpetuating the fraudulent scheme.
Source:
https://finance.yahoo.com/news/crypto-trading-platform-recruited-users-101301088.html