SEC Accuses NovaTech of Operating a Fraudulent Multi-Level Marketing Scheme
Monday, 12 August 2024, 21:31
NOVA TECH FRAUD ALLEGATIONS
The U.S. Securities and Exchange Commission (SEC) has charged the crypto firm NovaTech with fraud. The company is accused of raising more than $650 million from over 200,000 investors, many of whom are part of the Haitian-American community.
Details of the Charges
- NOVA TECH was founded in 2019 by Cynthia and Eddy Petion.
- SEC describes it as a multi-level marketing scheme.
- Investors were allegedly lured into the scheme under false pretenses.
Conclusion
The SEC's lawsuit against NovaTech is a significant development in the regulatory landscape of the cryptocurrency industry, shedding light on the risks involved in such investments and their repercussions for communities less familiar with these markets.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.