New York AG Letitia James has sued crypto firms NovaTechFx and AWS Mining for allegedly defrauding over 11,000 individuals out of more than $1 billion in a pyramid scheme. The lawsuit, filed on June 6, claims these companies targeted immigrant communities, particularly Haitian New Yorkers, with false promises of high returns.
An investigation revealed that from 2019 to 2023, investors deposited over $1 billion in crypto with NovaTech, but less than $26 million was actually traded. AWS Mining collapsed in 2019 after failing to deliver promised profits, leading the Petions to found NovaTech, which also collapsed in May 2023.
James seeks to ban both companies and their founders from conducting business in New York, aiming to secure disgorgement and damages. This lawsuit underscores the need for stricter regulations to protect vulnerable communities from financial fraud.
