SEC sues NovaTech for $650 million crypto fraud, pyramid scheme targeting Haitian-Americans

From Investing.com
August 12, 2024 3:31:29 pm:

The SEC has sued cryptocurrency company NovaTech and its co-founders for fraudulently raising over $650 million from 200,000 investors, including Haitian-Americans. The scheme lasted four years until NovaTech’s collapse in May 2023. New York AG also filed a lawsuit estimating fraud at over $1 billion. NovaTech recruited investors through religious appeals and is believed to be a pyramid scheme.

NovaTech and its co-founders allegedly used new funds to repay earlier investors and for personal gain. Cynthia Petion, branding herself “Reverend CEO,” assured investors their money would be safe. Six promoters were charged with fraud despite red flags. Restitution and civil fines are sought for victims. Martin Zizi agreed to pay a $100,000 civil fine in response to the charges.

Read more at Investing.com: US SEC sues over alleged $650 million global crypto fraud By Reuters