The SEC accuses NovaTech and its founders of implementing a cryptocurrency fraud scheme worth over $650 million.

Wu learned that the U.S. Securities and Exchange Commission (SEC) has accused NovaTech and its founders, Cynthia and Eddy Petion, of conducting a cryptocurrency fraud scheme worth over $650 million. According to the allegations, the Petion couple operated NovaTech as a multi-level marketing (MLM) and cryptocurrency investment project from 2019 to 2023, claiming that NovaTech would invest investors' funds in cryptocurrencies and the forex market, generating profits on the first day. In reality, most of the investors' funds were used to pay existing investors and commission to promoters, with only a small portion used for trading. In June, New York Attorney General Letitia James filed lawsuits against NovaTech and mining company AWS Mining, accusing both companies of engaging in illegal pyramid schemes involving over $1 billion in cryptocurrencies, with the initiators being Cynthia and Eddy Petion among others.