Reported 2 months ago
The U.S. Securities and Exchange Commission has filed a lawsuit against cryptocurrency company NovaTech and its co-founders, Cynthia and Eddy Petion, accusing them of defrauding over 200,000 investors worldwide of more than $650 million. The complaint states that the Petions misled investors about the safety of their funds and instead used new investments to pay earlier investors and maintain their lifestyle. The allegations describe the operation as a pyramid scheme, which allegedly exploited social media and community trust, particularly among Haitian-American investors. This lawsuit follows a previous action taken by the New York Attorney General, which estimated the total fraud amount to be over $1 billion.
Source: YAHOO