Crypto
SEC Alleges NovaTech Ltd Ran Fraudulent Crypto-Centered Scheme
The Securities and Exchange Commission (SEC) charged NovaTech Ltd, its operators, Cynthia and Eddy Petion, and the company’s top promoters with running a fraudulent scheme centered on crypto assets.
The defendants are charged with running a multi-level marketing company that claimed it would invest victims’ funds in crypto assets but did so with only a fraction of the funds, the SEC said in a Monday (Aug. 12) press release.
“NovaTech and the Petions caused untold losses to tens of thousands of victims around the world,” Eric Werner, director of the SEC’s Fort Worth Regional Office, said in the release.
NovaTech Ltd. did not immediately reply to PYMNTS’ request for comment.
The SEC’s complaint said that the Petions told investors that NovaTech would invest their funds on crypto asset and foreign exchange markets but instead used most of those funds to make payments to other investors, to pay commission to promoters or to be taken by the Petions, with only a fraction of the funds used for trading, according to the release.
The complaint also alleged that when NovaTech collapsed, most investors suffered substantial losses because they were unable to withdraw their funds, per the release.
The company raised over $650 million in crypto assets from more than 200,000 investors around the world, the release said.
In addition to its charges against the company and the Petions, the SEC charged six of NovaTech’s top promoters, saying that they recruited investors and promoters and were paid “substantial commissions” for doing so, according to the release.
“As we allege, MLM schemes of this size require promoters to fuel them, and today’s action demonstrates that we will hold accountable not just the principal architects of these massive schemes, but also promoters who spread their fraud by unlawfully soliciting victims,” Werner said in the release.
In another case related to crypto, the SEC said in March that it charged 17 individuals connected with Houston-based CryptoFX, alleging that they were involved in a Ponzi scheme.
The SEC’s complaint alleged that leaders of the CryptoFX network solicited investors by promising that the organization’s trading in crypto assets and foreign exchange would deliver returns of 15% to 100%, raised $300 million, and then used most of the funds to pay “supposed returns” to other investors and to pay commissions and bonuses to themselves.
Crypto
Gold and Silver Explode to Record Highs as Fed Independence Fears Ignite Safe-Haven Panic
Crypto
Former NYC Mayor Eric Adams unveils ‘NYCToken’ cryptocurrency he claims will fight antisemitism
Swagger remains his currency.
High-flying Eric Adams returned from his post-mayoralty travels to unveil the “NYC Token” on Monday, moving forward on his bizarre vow to tackle antisemitism with cryptocurrency.
Adams announced the crypto coin in Times Square, surrounded roughly a half dozen reporters curious to see what the former mayor would say in his first public appearance since leaving office not even two weeks ago.
“One focus we have on this New York City coin is to use the revenue generating to address anti-Americanism, antisemitism, to teach our children how to embrace the blockchain technology of how to run cities correctly,” Adams said.
“As Walmart is using blockchains to deal with their food chain and transparency, we know cities can run better, and by using this New York City token, this New York City token, we’re going to continue to invest in making our city a safer city.”
While the former Hizzoner was still vague on details, the broad strokes of his grand plan are essentially that profits from the “NYC Token” will go into a still-unnamed nonprofit, which will then fund groups that combat antisemitism.
Historically black colleges and universities also will somehow be involved in Adams plans, he said.
“I’ve talked about it often, I want to get on our college campuses and make sure that we start the process of having our young people appreciate our country today,” he said.
The crystal-loving, ghost-believing Adams made clear early in his first and only term that he was a devotee of the magic of cryptocurrency. He famously took his early paychecks in cryptocurrency and cultivated close ties with Bitcoin billionaire and former “The Mighty Ducks” star Brock Pierce.
Adams is one of three creators behind the “NYC Token,” he said, noting Pierce was not involved.
He said the other creators are listed on the crypto coin’s website, but the page remained blank Monday other than two slogans and a link to follow the token’s X account.
For those worried the whole venture could be a money-making scam, Adams promised he wouldn’t take a salary — at least at first.
“I’m not taking a salary at this time,” he said. “Down the line, if you take the determination of doing so, we will reveal that.”
The famous frequent-flyer-mile-collector said he had been spending his days since leaving office in Dubai and the Congo.
The jet-setter ex-mayor teased that he will be working with other countries across the globe and bringing the Big Apple’s “levels of services” abroad.
Mayor Zohran Mamdani didn’t seem too jazzed about his predecessor’s plans. When asked if he’d buy one of Adams’ crypto tokens, the new mayor had a one-word reply.
“No,” Mamdani said with a smile.
Crypto
Arthur Hayes Discusses How the Price of Bitcoin and Certain Cryptos Will Skyrocket
-
Detroit, MI1 week ago2 hospitalized after shooting on Lodge Freeway in Detroit
-
Technology1 week agoPower bank feature creep is out of control
-
Montana3 days agoService door of Crans-Montana bar where 40 died in fire was locked from inside, owner says
-
Delaware4 days agoMERR responds to dead humpback whale washed up near Bethany Beach
-
Dallas, TX5 days agoAnti-ICE protest outside Dallas City Hall follows deadly shooting in Minneapolis
-
Dallas, TX1 week agoDefensive coordinator candidates who could improve Cowboys’ brutal secondary in 2026
-
Iowa7 days agoPat McAfee praises Audi Crooks, plays hype song for Iowa State star
-
Virginia3 days agoVirginia Tech gains commitment from ACC transfer QB
