SEC Cracks Down on NovaTech's $650 Million Crypto Scam
The US Securities and Exchange Commission (SEC) has charged NovaTech, a multi-level marketing scheme, with orchestrating a massive $650 million crypto and forex fraud. The company's leaders, Cynthia and Eddy Petion, allegedly siphoned off millions of dollars for themselves.
NovaTech promised safe investments in crypto and forex markets to over 200,000 investors worldwide. However, most funds were used to pay earlier investors and promoters, with only a small amount actually traded. The scheme operated from 2019 to 2023 and targeted the Haitian-American community.
The SEC's Director of the Fort Worth Regional Office, Eric Werner, emphasized their commitment to holding both masterminds and promoters accountable. He stated that NovaTech 'caused untold losses to tens of thousands of victims around the world.'