Zach Copley
Overall, around 200 thousand individuals worldwide were affected by the fraudulent scheme orchestrated by the organizers, the SEC says. The estimated total damage is $650 million.
From 2019 to 2023, NovaTech functioned as a multi-level marketing (MLM) and cryptoasset investment scheme. As per the regulator, NovaTech organizers enticed investors with promises of guaranteed returns by investing in cryptocurrency assets and trading on foreign exchange markets.
At that, most of the money from new investors was actually used to reimburse earlier investors, with only a small fraction going towards trading. By taking this action, the SEC is of the opinion that the Petions stole "millions of dollars." Several project promoters who brought in new investors to NovaTech are also facing charges.
Previously, the company and its creators faced identical accusations from the Attorney General of New York. At that point in time, the monetary loss resulting from deceptive activities was calculated to be over $1 billion.
source: bloomberg.com
From 2019 to 2023, NovaTech functioned as a multi-level marketing (MLM) and cryptoasset investment scheme. As per the regulator, NovaTech organizers enticed investors with promises of guaranteed returns by investing in cryptocurrency assets and trading on foreign exchange markets.
At that, most of the money from new investors was actually used to reimburse earlier investors, with only a small fraction going towards trading. By taking this action, the SEC is of the opinion that the Petions stole "millions of dollars." Several project promoters who brought in new investors to NovaTech are also facing charges.
Previously, the company and its creators faced identical accusations from the Attorney General of New York. At that point in time, the monetary loss resulting from deceptive activities was calculated to be over $1 billion.
source: bloomberg.com
