New York AG Sues NovaTech and AWS Mining for $1B Fraud

As a long-time crypto investor, I’ve seen my fair share of scams and fraudulent schemes in the industry. But this latest news about NovaTech Ltd and AWS Mining Pty Ltd is particularly disheartening. I’ve always believed that the potential for massive returns in cryptocurrency investments comes with a significant amount of risk. And as an investor, it’s our responsibility to do due diligence before putting our hard-earned money into any investment.

The New York Attorney General, Letitia James, has initiated a legal action against NovaTech Ltd and AWS Mining Pty Ltd, accusing them of swindling more than a billion dollars from investors in the context of cryptocurrency businesses.

As a researcher, I’ve come across a lawsuit filed against NovaTech Ltd, a company founded by Cynthia and Eddy Petion. According to the claim, NovaTech attracted investors with assurances of weekly profits, amassing over $1 billion in investments between 2019 and May 2023. However, it’s reported that only around $10 million was actually allocated for trading activities, leaving the remaining funds unaccounted for.

As a researcher, I’ve come across allegations against AWS Mining Pty Ltd and NovaTech, two companies that reportedly misled investors regarding their ability to triple investments in cryptocurrency mining within a short timeframe of 15 months. Unfortunately, these operations imploded in 2019 after it was revealed that they were operating as pyramid schemes. In simpler terms, new investors’ deposits were being used to pay off earlier investors instead of being invested in legitimate mining activities. NovaTech, in particular, has been identified as a Ponzi scheme.

As an analyst, I’ve uncovered allegations against certain companies involving exploitation of Haitian and other immigrant communities, primarily based on their religious affiliations. These entities reportedly assured investors of a weekly profit, reaching out to potential targets through prayer gatherings, social media platforms, and WhatsApp groups, utilizing Creole language for communication.

Among the dozen defendants cited in the legal action are individuals currently residing in Panama, identified as the petitioners in the case. The primary concerns raised by Attorney General James revolve around the significant potential for fraud in the unregulated use of cryptocurrency platforms. She has stated that these cryptocurrency businesses have discovered that vulnerable communities, such as immigrants and those with strong religious beliefs, are willing to part with all they own in pursuit of dreams, often leaving them financially drained.

In a recent development, Disbarred lawyer David Kagel admitted guilt in collaborating on a fraudulent cryptocurrency scheme that swindled more than $9.5 million from unsuspecting victims. The dupe artists, including Kagel, lured investors with enticing lies of substantial returns from automated cryptocurrency trading systems.

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2024-06-07 01:08