SEC Files a Lawsuit Against $650M Crypto Fraud Promoters

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The US Securities and Exchange Commission (SEC) has taken legal action against NovaTech, a cryptocurrency company, and its married co-founders, Cynthia and Eddy Petion.

According to the SEC, the Petions defrauded more than 200,000 investors worldwide, including many Haitian-Americans, by falsely promising that their investments would be safe and profitable.

The SEC alleges that instead of using new investments for legitimate purposes, the Petions primarily used them to repay earlier investors and pay commissions to promoters, while also pocketing millions of dollars for themselves.

The scheme continued for four years until NovaTech collapsed in May 2023. The SEC’s lawsuit, filed in Miami federal court, follows a similar lawsuit filed by the New York Attorney General Letitia James in a Manhattan state court two months prior.