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New York Attorney General <a href="https://coingape.com/bankrupt-lender-genesis-global-settles-lawsuit-with-new-york-regulator/" rel="noopener noreferrer nofollow">Letitia James </a>has initiated a lawsuit against two cryptocurrency entities and their associates, claiming a colossal $1 billion <a href="https://coingape.com/crypto-mailing-vendors-list-hacked-tether-ceo-lauds-caution/" rel="noopener noreferrer nofollow">crypto scam</a> that targeted primarily immigrant and religious groups. Filed in a Manhattan state court, the action accuses NovaTech Ltd and <a href="https://coingape.com/best-defi-wallets/" rel="noopener noreferrer nofollow">AWS</a> Mining Pty Ltd of exploiting their investors’ religious beliefs to orchestrate one of the most significant frauds in the digital currency arena to date.
<h2 id="strong-crypto-firms-misuse-faith-for-financial-scams-strong">Crypto Firms Misuse Faith for Financial Scams</h2>
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’ contributions through cryptocurrency mining—a claim that led to its downfall in 2019. Both companies reportedly leveraged social platforms, prayer groups, and even communication through <a href="https://coingape.com/singapore-police-warn-of-rising-whatsapp-phishing-scams/" rel="noopener noreferrer nofollow">WhatsApp</a>, often utilizing the Creole language to target Haitian and other immigrant communities effectively.
Moreover, NovaTech’s co-founders, Cynthia and Eddy Petion, reportedly reside in Panama. Cynthia Petion, self-titled as the “Reverend CEO,” allegedly presented the company as a divine vision yet mockingly referred to herself as the “Zookeeper” in private, dismissing her investors as part of a cult-like following. These revelations underscore the manipulative tactics used to lure unsuspecting victims into the scheme.
<h2 id="crypto-scam-targets-immigrant-communities-savings">Crypto Scam Targets Immigrant Communities’ Savings</h2>
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 <a href="https://coingape.com/william-morro-charged-in-onecoin-fraud-pleads-guilty/" rel="noopener noreferrer nofollow">Ponzi scheme</a>, using the funds from new investors to pay purported ‘profits’ 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.
Attorney General James condemned the actions of these firms, emphasizing the dangers posed by unregulated cryptocurrency platforms. 
<blockquote>
 “These cryptocurrency companies targeted immigrant and religious communities with promises of financial freedom but instead stole their money and drained their life savings,” James stated.
</blockquote>
 Her office is now seeking restitution for the victims, alongside civil damages and a sweeping ban from the securities industry for the implicated parties.
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Also Read: <a href="https://coingape.com/defi-and-bitcoin-merge-with-sushiswap-rootstock-integration/#:~:text=SushiSwap%2C%20a%20decentralized%20exchange%20platform,a%20secure%20and%20decentralized%20environment." rel="noopener noreferrer nofollow">DeFi and Bitcoin Merge with SushiSwap Rootstock Integration</a>
The post <a href="https://coingape.com/crypto-scam-nyag-lock-horns-with-firms-with-1b-fraud-stint/" rel="noopener noreferrer nofollow">Crypto Scam: NYAG Lock Horns With Firms With $1B Fraud Stint</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.

Crypto Scam: NYAG Lock Horns With Firms With $1B Fraud Stint

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