SEC Charges NovaTech Promoters in Alleged $650M Crypto Ponzi Scheme

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SEC Charges NovaTech Promoters in Alleged $650M Crypto Ponzi Scheme
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The U.S. Securities and Exchange Commission has filed charges against NovaTech Ltd. and its principals, Cynthia and Eddy Petion, for allegedly organizing a crypto fraud that defrauded over 200,000 investors worldwide, including many within the Haitian-American community.

Investors were led to believe that their funds would be safely invested in cryptocurrency and foreign exchange markets, with Cynthia Petion reassuring them that their capital would yield profits from day one.A huge portion of the funds was also allegedly siphoned off by the Petions for personal use. As the scheme began to unravel, most investors found themselves unable to withdraw their funds, resulting in significant financial losses.

These red flags included regulatory actions taken against NovaTech by U.S. and Canadian authorities, which the promoters allegedly ignored while continuing to solicit new investments.

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