US SEC Charges NovaTech and Top Executives in $650 Million Crypto Fraud
CryptoNewsTerminal Staff12 Aug, 2024
US SEC Charges NovaTech and Top Executives in $650 Million Crypto Fraud
The United States Securities and Exchange Commission (SEC) has charged Cynthia Petion and Eddy Petion with orchestrating a $650 million crypto fraud. The couple operated the alleged crypto pyramid schemes, AWS Mining and NovaTechFX, and ran a multi-level marketing (MLM) and crypto investment program from 2019 to 2023. More than 200,000 investors are believed to have been involved in the incident. The SEC alleges that the Petions made false and misleading statements to investors about the profitability and safety of their investments. They also allegedly used investor funds to purchase luxury items and pay for personal expenses. The SEC's charges include securities fraud, wire fraud, and money laundering. The Petions have agreed to settle the charges without admitting or denying the allegations. They have agreed to pay $25 million in disgorgement and a $750,000 civil penalty. The SEC's action is the latest in a series of crackdowns on crypto fraud. The SEC has brought several enforcement actions against crypto companies and individuals in recent years. The SEC's actions are aimed at protecting investors from fraud and ensuring the integrity of the crypto markets.
