- The New York Attorney General, Letitia James, sued two cryptocurrency companies and their promoters for cheating hundreds of thousands of victims out of more than $1 billion by taking advantage of people’s religious beliefs in Haitian and other immigrant communities.
Pyramid Schemes Unveiled: The NovaTechFx and AWS Mining Scandal
James stated on Thursday that in Manhattan’s state court assets worth over $1 billion were sent to NhovaTech Ltd before it collapsed in May 2023, but only $26 million went to trading by investors drawn with weekly income pledges for nearly four years.
He filed a lawsuit in a state court in Manhattan last Thursday claiming that investors who were promised weekly profits had sent NovaTech Ltd just over $1 billion within the four years immediately before it went under in May 2023, but the money actually devoted to trading was only $26 million.
Two years prior to its 2019 collapse, she also said that AWS Mining Pty Ltd falsely claimed that it could triple investors’ money within fifteen months by mining, where computers verify cryptocurrency transactions and generate new cryptocurrencies.
James said that the two cons were both pyramid schemes that award existing investors with recruit bonuses in their companies. Additionally, she stated that NovaTech operated as a Ponzi scheme in which earlier investors received “profits” as well as bonuses from the new investors’ deposits.
How They Targeted Immigrants
“These cryptocurrency companies targeted immigrant and religious communities with promises of financial freedom but instead stole their money and drained their life savings,” James said in a statement. “We are seeing the real dangers of unregulated cryptocurrency platforms with schemes like these.”
The suit is for compensation to the aggrieved, claims about how the security sector should be operated must be included.
Read about the recent crypto frauds taking place in the crypto world: Man Suffers A Loss Of Rs 1.05 Crore Due To Fraudulent Activity In Crypto Currency Trading
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