New York Attorney General <\/span>Letitia James <\/span><\/a>has initiated a lawsuit against two cryptocurrency entities and their associates, claiming a colossal $1 billion <\/span>crypto scam<\/span><\/a> that targeted primarily immigrant and religious groups. Filed in a Manhattan state court, the action accuses NovaTech Ltd and <\/span>AWS<\/span><\/a> Mining Pty Ltd of exploiting their investors\u2019 religious beliefs to orchestrate one of the most significant frauds in the digital currency arena to date.<\/span><\/p>\n NovaTech Ltd, under scrutiny since its 2023 collapse, allegedly amassed over $1 billion from investors within nearly four years. However, a mere $26 million of these funds were employed in trading activities. AWS Mining Pty Ltd is accused of similar deceit, having promised to triple investors\u2019 contributions through cryptocurrency mining\u2014a claim that led to its downfall in 2019. Both companies reportedly leveraged social platforms, prayer groups, and even communication through WhatsApp<\/a>, often utilizing the Creole language to target Haitian and other immigrant communities effectively.<\/span><\/p>\n <\/p>\n Moreover, NovaTech\u2019s co-founders, Cynthia and Eddy Petion, reportedly reside in Panama. Cynthia Petion, self-titled as the \u201cReverend CEO,\u201d allegedly presented the company as a divine vision yet mockingly referred to herself as the \u201cZookeeper\u201d in private, dismissing her investors as part of a cult-like following. <\/span>These revelations underscore the manipulative tactics used to lure unsuspecting victims into the scheme.<\/span><\/p>\n <\/p>\n The lawsuit details how NovaTech and AWS Mining operated as classic pyramid schemes, enticing participants with bonuses for recruiting new investors. Additionally, NovaTech was implicated in running a <\/span>Ponzi scheme<\/span><\/a>, using the funds from new investors to pay purported \u2018profits\u2019 and bonuses to earlier participants. This unsustainable model inevitably led to the collapse of both enterprises, leaving thousands of investors bereft of their life savings.<\/span><\/p>\n Attorney General James condemned the actions of these firms, emphasizing the dangers posed by unregulated cryptocurrency platforms. <\/span><\/p>\n <\/p>\n \u201cThese cryptocurrency companies targeted immigrant and religious communities with promises of financial freedom but instead stole their money and drained their life savings,\u201d James stated.<\/span><\/p>\n<\/blockquote>\n <\/p>\n Her office is now seeking restitution for the victims, alongside civil damages and a sweeping ban from the securities industry for the implicated parties.<\/span><\/p>\n \u00a0<\/p>\n Also Read:<\/b> DeFi and Bitcoin Merge with SushiSwap Rootstock Integration<\/span><\/a><\/p>\n <\/p>\n <\/p>\n \u2713 Share:<\/p>\nCrypto Firms Misuse Faith for Financial Scams<\/strong><\/h2>\n
Crypto Scam Targets Immigrant Communities\u2019 Savings<\/h2>\n
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