United States of America: Filed SEC lawsuit against NovaTech and Associates over alleged misuse of invested cryptocurrency

On 12 August 2024, the Securities and Exchange Commission (SEC) announced charges against NovaTech, its founders Cynthia and Eddy Petion, and several promoters for allegedly operating a fraudulent scheme that collected USD 650 million in crypto assets from more than 200'000 investors globally. The SEC claims that the scheme, operational from 2019 through 2023, falsely promised investors profits from crypto assets and foreign exchange market investments. According to the SEC, the majority of the funds were used to pay earlier investors and commissions, with only a small portion allocated to actual trading. The SEC's complaint, filed in the District Court for the Southern District of Florida, accuses NovaTech and the involved parties of violating federal securities laws through deceptive practices and seeks permanent injunctive relief, disgorgement of ill-gotten gains, and civil penalties.