SEC Slaps NovaTech with $650M Crypto Fraud Charges
The US Securities and Exchange Commission (SEC) has charged NovaTech and its top executives with a $650 million crypto fraud. The scheme, which operated from 2019 to 2023, promised safe investments in crypto and forex markets to over 200,000 investors worldwide.
NovaTech was structured as a multi-level marketing scheme, where investors were told their money would be used for trading. However, the SEC alleges that most funds went to pay earlier investors and promoters, with only a small amount actually being traded.
Cynthia Petion, one of NovaTech's leaders, made big promises to investors, guaranteeing profits from day one. However, the reality was far less rosy, causing untold losses to tens of thousands of victims around the world, according to Eric Werner, Director of the SEC's Fort Worth Regional Office.