NY AG Sues 2 Crypto Firms: Letitia James, the Attorney General of New York, has initiated a big crackdown on Crypto Firms’ $1B Fraud by filing a case against two companies for overseeing a pyramid scheme worth one billion dollars, according to the most recent complaint. The claimed companies and their promoters have used the scam to defraud more than 11,000 people living in New York. The Haitian community is the primary recipient of their fraudulent activities.
NY Attorney General Takes Legal Action Against Massive Crypto Scam
AWS Mining and NovaTech are facing accusations of running a massive cryptocurrency scam in a lawsuit filed by New York Attorney General Letitia James. Market participants, mostly of Haitian heritage, were bilked out of more than Crypto Firm $1B Fraud by the companies and their promoters, notably Cynthia and Eddy Petion, as stated in the lawsuit. Notably, one of the shady businesses claimed to be involved in cryptocurrency trading and mining and offered huge profits. In April 2019, the first scam, AWS Mining, which promised a return on investment of 200%, crashed.
Following NovaTech’s launch, another company claimed to be a cryptocurrency and forex trading platform and sued in an attempt to defraud investors. Cryptocurrency investors put over Crypto Firms for $1B fraud into NovaTech between August 2019 and April 2023. Nevertheless, the document indicates that the platform only saw $26 million worth of trades.
Although the Attorney General is suing both businesses, they are characterized as pyramid scams. Recruits were enticed with the promise of assured profits, and the funds from those investors were utilized to repay those who had invested earlier. As with past Ponzi schemes, NovaTech allegedly redistributed trading profits from other participants’ funds.
Using affinity fraud to take advantage of cultural and linguistic links, these crypto scam advances have preyed on vulnerable populations. Marketers aimed their schemes at Haitian investors by promoting them in Creole and painting them as chances for financial independence. To increase the number of victims, this tactic made use of the community’s confidence and religious belief.
Also Read: Crypto Fund Executive Gets 3 Years For $55 Million Scheme
A Closer Look Into The Details
The crypto fraud lawsuit states that in June of 2022, the Petions sold their home in Florida and fled to Panama. While escaping NovaTech, they allegedly sent and received tens of millions of cryptocurrencies. At that point, the deceitful character of NovaTech’s activities became apparent, according to the lawsuit.
At the same time, the New York Attorney General’s case highlights the predatory character of cryptocurrency fraud by highlighting the targeting of people who could not pay the losses. They succeeded in amassing substantial assets before the Scheme’s demise by promising assured profits and capitalizing on community relationships.
However, Attorney General Letitia James has promised to keep looking for those who lost money in the cryptocurrency scam. Her office looks into the fraudulent acts to get the money back and punish the people responsible. Above all, the lawsuit is part of a more significant movement to rein in dishonest behavior in the dynamic cryptocurrency market.
Anyone who may have been impacted is strongly encouraged. To come forward and report their experiences to the Attorney General’s office as the inquiry progresses. The crackdown on AWS Mining and NovaTech aims to ensure that the victims get justice and make it. Evident that the crypto industry will not tolerate fraudulent acts.
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