The SEC has slapped NovaTech and its top brass with charges. The allegation? A whopping $650 million crypto fraud.
NovaTech's scheme was a doozy. It promised safe investments in crypto and forex markets. Over 200,000 investors worldwide fell for it.
The company's leaders, Cynthia and Eddy Petion, are in deep trouble. They allegedly siphoned off millions for themselves.
But the Petions weren't alone. The SEC also charged six promoters. These included Martin Zizi and Dapilinu Dunbar.
NovaTech operated from 2019 to 2023. It was structured as a multi-level marketing scheme.
Investors were told their money would be used in crypto and forex trading. Cynthia Petion made big promises. She guaranteed profits from day one.
The reality was far less rosy. Most funds went to pay earlier investors and promoters. Only a small amount was actually traded.
The scheme hit the Haitian-American community hard. Many investors couldn't withdraw their funds when NovaTech collapsed.
Eric Werner, Director of the SEC's Fort Worth Regional Office, didn't mince words. He said NovaTech "caused untold losses to tens of thousands of victims around the world."
Werner emphasized the SEC's commitment. They're going after both the masterminds and the promoters. No one's getting off easy in this case.
The SEC's action sends a clear message. Crypto frauds, no matter how sophisticated, won't fly under the radar. The watchdog is keeping its eyes peeled. Not everyone thinks it is really for good, as some old-school cryptofans still see regulations as evil force on the market, yet wide crypto adoption is impossible without entities like SEC involved.