New York AG Letitia James Sues NovaTech, AWS Mining For $1 Billion Crypto Pyramid Schemes
New York Attorney General Letitia James is suing crypto trading firm NovaTech, now shuttered digital asset company AWS Mining, and at least two key promoters for reportedly defrauding investors out of $1 billion, court documents from the June 6 lawsuit reveal.
Between 2017 and 2019, AWS Mining, married couple Cynthia and Eddy Petion, and several additional associates promoted a fraud scheme that saw victims promised a 200% return on investment from mining cryptocurrencies.
“AWS Mining’s promises of guaranteed 200% returns were fraudulent and its scheme was unsustainable, because, according to defendant Cynthia Petion, AWS Mining paid returns and bonuses that were too high for too long,” the lawsuit states.
When AWS Mining finally collapsed in April 2019, most investors were left with nothing. By August of that year, the Petions launched NovaTech alongside a handful of fellow AWS Mining promoters.
While over $1 billion was supposedly deposited onto the crypto trading platform, less than $26 million was ever actually traded.
⚖️AG Letitia James alleges that crypto firms #NovaTech and AWS Mining defrauded over 200,000 people of $1 billion. Founders Cynthia and Eddy Petion are named in the suit, which claims 11,000 New Yorkers lost millions to NovaTech's #Ponzischeme. #AWSMining #CryptoNews pic.twitter.com/Ipv9RUM5mo
— 1ATH.Studio (@1ATHStudio) June 7, 2024
According to James’ lawsuit, the Petions carried out the pyramid schemes by targeting investors of Haitian descent who were “most in need of income and least able to afford a loss” by alleging they were the path to “financial freedom.”
“Defendants preyed upon the same victims of AWS Mining when recruiting for NovaTech, capitalizing on the exclusion of these communities
Read more on cryptonews.com
