The U.S. Securities and Exchange Commission (SEC) continues its pressure on the cryptocurrency industry, most recently filing a lawsuit against cryptocurrency company NovaTech and its founding partners.
The SEC has filed a fraud charge against NovaTech and its co-founders Cynthia and Eddy Petion.
In the lawsuit, the SEC alleges that Novatech and its founders defrauded more than 200,000 investors worldwide, including many Haitian Americans, and collected more than $650 million.
NovaTech and the co-founders allegedly promised investors that their money would be safe, and Cynthia Petion assured investors that they would “make a profit from day one.”
The SEC said NovaTech attempted to appeal to the victims' religious beliefs through social media, Telegram and WhatsApp, and sometimes in Haitian Creole, with Cynthia Petion referring to herself as a “Priest CEO” and saying that NovaTech was “God's vision.”
The SEC also filed fraud charges against Martin Zizi, Dapilinu Dunbar, James Corbett, Corrie Sampson, John Garofano, and Marsha Hadley for their roles in introducing NovaTech to investors.
About two months ago, New York Attorney General Letitia James filed a fraud lawsuit against NovaTech and co-founders Cynthia and Eddy Petion in a Manhattan state court. James alleges in the lawsuit that NovaTech and its founders fraudulently raised more than $1 billion.