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NYAG Sues Crypto Firms NovaTechFx and AWS Mining Over Alleged $1 Billion Fraud
New York AG Letitia James sued crypto firms NovaTechFx and AWS Mining for allegedly defrauding more than 11,000 individuals out of more than $1 billion in a pyramid scheme.
New York Attorney General (NYAG) Letícia James filed a lawsuit on June 6 against two crypto trading companies NovaTechFx, its founders Cynthia and Eddy Petion, and AWS Mining Pty Ltd. pyramid schemes that defrauded more than 11,000 New Yorkers and resulted in losses exceeding $1 billion.
The press release published by NYAG states that NovaTech and AWS Mining targeted immigrant communities, especially Haitian New Yorkers, through prayer groups, social media and WhatsApp, making fraudulent promises of high investment returns.
An investigation by the Attorney General’s Office revealed that from 2019 to 2023, investors deposited more than $1 billion worth of crypto into NovaTech, but less than $26 million was actually traded.
“Thousands of New Yorkers were falsely promised better lives if they simply trusted NovaTech and AWS Mining with their money, but it was all a lie. These cryptocurrency companies targeted immigrant and religious communities with promises of financial freedom, but instead stole their money and drained their savings.”
Letícia James
The complaint details that AWS Mining, an alleged scam, claimed to generate high returns from crypto mining but failed to deliver the promised profits, collapsing in 2019. The Petions later founded NovaTech, which also allegedly recruited new investors with promises of high returns.
Despite marketing NovaTech as a registered hedge fund broker licensed to trade cryptocurrencies in the US, the lawsuit alleges that the company misrepresented its operations as weekly profits “were built up and payments came from other investors’ money.” NovaTech collapsed in May 2023 and tens of thousands of investors were unable to withdraw their crypto funds, the complaint says.
Accusing the Petitions of violating the Martin Law, James seeks to prohibit AWS Mining, NovaTech and their founders from conducting business in New York, as well as secure restitution and damages.