As a researcher with a background in financial fraud and consumer protection, I find Letitia James’ actions against NovaTechFx and AWS Mining both commendable and concerning. It is disheartening to learn that these firms allegedly defrauded over 11,000 individuals out of more than $1 billion through a pyramid scheme, particularly targeting immigrant communities, including Haitian New Yorkers, through various channels like prayer groups, social media, and WhatsApp.
I have uncovered that New York Attorney General Letitia James has initiated legal action against crypto companies NovaTechFx and AWS Mining. The reason for the lawsuit is their alleged involvement in defrauding over 11,000 people collectively, with reported losses exceeding $1 billion, through a pyramid scheme.
As a crypto investor, I’ve been closely following the developments regarding the legal action taken by the New York Attorney General (NYAG) Letitica James against NovaTechFx, its founders Cynthia and Eddy Petion, and AWS Mining Pty Ltd. on June 6. According to the NYAG’s allegations, these entities orchestrated illegal pyramid schemes that defrauded more than 11,000 New York residents, causing losses exceeding $1 billion. As an investor, it’s crucial to be aware of such activities and protect ourselves from potential scams. I urge everyone in the crypto community to exercise caution and due diligence before investing in any projects or companies.
In a recent statement, the New York Attorney General’s office announced that NovaTech and AWS Mining allegedly targeted specific communities, specifically Haitian New Yorkers, via prayer groups, social media, and WhatsApp. These companies are accused of making deceitful promises concerning high returns on investments.
The Attorney General’s Office uncovered that between 2019 and 2023, a total of more than one billion dollars was invested in crypto by clients of NovaTech. However, only around 26 million dollars worth of trades occurred during this period.
“New York City residents were deceived into believing they would achieve superior living conditions by placing their trust in NovaTech and AWS Mining with their funds. However, this was a deceitful scheme. These cryptocurrency firms exploited immigrant and religious communities with enticing promises of financial independence, but instead, they swindled their money and emptied their savings.”
Letitia James
As a researcher investigating this matter, I’ve come across concerns regarding two entities: AWS Mining and NovaTech. AWS Mining, which was reportedly involved in fraudulent crypto mining activities, promised substantial profits to its investors. However, it failed to deliver on these promises, ultimately collapsing in the year 2019. Subsequently, the individuals behind AWS Mining established NovaTech, and once again, new investors were lured with enticing promises of high returns.
As an analyst, I’ve come across various allegations against companies, and one recent case involves NovaTech, which marketed itself as a legitimate hedge fund broker registered in the U.S. for crypto trading. However, according to a lawsuit, the company allegedly misrepresented its operations by fabricating weekly profits that were not genuine. The profits reportedly came from other investors’ funds instead. Sadly, NovaTech went bankrupt in May 2023, leaving tens of thousands of investors stranded and unable to withdraw their crypto investments.
James aims to prohibit AWS Mining, NovaTech, and their leaders from operating in New York, alleging they’ve breached the Martin Act. He also intends to obtain compensation for any financial losses (disgorgement) and further damages.
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2024-06-07 11:02