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Blog » Cryptocurrency » New York Attorney General Letitia James takes aim at crypto exchange in $1bn case

New York Attorney General Letitia James takes aim at crypto exchange in $1bn case

Attorney General Letitia James and Haitian fraud victims.

New York Attorney General Letitia James takes aim at NovaTechFx and AWS Mining in $1bn case.

The court case brings charges against NovaTechFx (NovaTech), its founders Cynthia and Eddy Petion, and the cryptocurrency mining company AWS Mining Pty Ltd. (AWS Mining).

Charges include mass fraud enveloped in a pyramid scheme that defrauded thousands of New York residents and left a $1bn crypto hole in the process.

New York Attorney General wants restitution for Haitian fraud victims

The court case alleges that the companies preyed upon Haitian New Yorkers in a scheme that targeted spiritual and prayer groups. The parties in question promised massive returns on investments but failed to deliver, siphoning the hard-working people’s money away.

“Thousands of New Yorkers were falsely promised better lives if they simply trusted NovaTech and AWS Mining with their money, but it was all a lie,” said Attorney General James. “These cryptocurrency companies targeted immigrant and religious communities with promises of financial freedom but instead stole their money and drained their life savings.”

NovaTech and AWS Mining are alleged to have coerced 11,000 New York residents from New York City, Westchester, Long Island, and Rockland and Orange counties.

According to the OAG, Cynthia and Eddy Petion, James Corbett, Martin Zizi, and Frantz Ciceron were all involved in the AWS Mining scheme. Despite tens of millions of dollars being pumped into the company, it folded in 2019. It would leave those waiting on the proposed investment return of 15 to 20% of their original stake with nothing.

The Petions would then launch NovaTech and repeat the same cycle until the company closed its doors in 2023. The Office of the Attorney General (OAG) brought the case forward to highlight NovaTech’s misdeeds. The company has overseen over $1bn in cryptocurrency deposits but only traded a fraction of this ($26 million).

Renold Julien, Executive Director, Konbit Neg Lakay, the Haitian/American Community Center of Rockland County; President, Rockland County Haiti Relief spoke about the malpractice aimed at the companies and their founders.

He said “Some (Haitians) have even been forced out of Haiti due to violence, they didn’t come to America to be taken advantage of. I thank Attorney General James for taking this action to protect all New Yorkers. Konbit Neg Lakay is looking for full restitution.”

Attorney General James is also seeking disgorgement and damages for those affected. She is also seeking to bar the parties involved in the crypto scheme, AWS Mining, and NovaTech from operating in New York again.

Image: Ideogram.

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