New York’s Attorney General, Letitia James, has taken legal action against two cryptocurrency firms with shared founders, alleging that over $1 billion was lost by hundreds of thousands of people. The lawsuit targets NovaTech, a cryptocurrency trading company, along with its founders Cynthia and Eddy Petion, as well as the now-defunct AWS Mining and various individuals and entities associated with them.
The lawsuit claims that more than 11,000 residents of New York, particularly members of the Haitian community, lost millions of dollars investing in NovaTech, which is accused of operating as a Ponzi scheme that used religious appeals to lure in investors. NovaTech also allegedly misrepresented its licensing and registration status, with its registration in St. Vincent and the Grenadines being revoked in January 2023, leading to its collapse in May of the same year.
Prior to launching NovaTech, the Petions were involved in the founding of AWS Mining, which shut down in 2019 after failing to deliver on its promised returns. The lawsuit states that over $1 billion was deposited into AWS Mining between 2019 and 2023, but only $26 million was actually traded.
Attorney General James is seeking to hold the defendants accountable by seeking disgorgement, damages, and a ban on them conducting business in New York. In a statement, James expressed her determination to pursue justice for the victims of these alleged fraudulent schemes.
Furthermore, the lawsuit highlights potential fraudulent connections, such as the active NovaTech website claiming funds were lost in a data breach, which raises suspicions given the company’s history. It also mentions a South African company named NovaTech, which shared similarities with the Petions’ company, as well as previous actions taken by the Texas State Securities Board against a company named AWS Mining, although the Petions were not implicated in that case.
In conclusion, the legal action taken by the New York Attorney General sheds light on the alleged misconduct of these cryptocurrency firms, aiming to hold them accountable for the significant losses suffered by investors.