The New York Attorney General’s Office has filed a lawsuit against NovaTechFx and AWS Mining Pty Ltd, as well as their founders Cynthia and Eddie Petion. Authorities accuse crypto platforms of organizing illegal financial schemes that led to the deception of more than 11 New Yorkers and losses exceeding $000 billion.
A statement released by prosecutors said NovaTech and AWS Mining’s primary targets were immigrant communities living in New York. They were contacted through houses of worship, social media and WhatsApp, promising high returns on investment.
At first, AWS Mining worked with clients, promising profits from Bitcoin mining. In 2019, it went bankrupt. After this, the Petions founded the company NovaTech, which continued to attract new investors with promises of high profits.
The investigation revealed that from 2019 to 2023, NovaTech and AWS Mining clients gave more than $1 billion to scammers, of which only $26 million was used for its intended purpose. NovaTech collapsed in May 2023, and tens of thousands of its customers never received their money.
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