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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.

The cryptocurrency markets are now bracing for a significant price impact. With the brewing Israel-Iran war looming over, the financial domains of the world are gearing for a transformative phase to enter their lives.

This change may compel significant tokens to note a dip in their prices. However, the market tends to recover and deliver stellar returns with time. Here are the two top coins one should stash during times of crisis for better returns soon.

Also Read: Bitcoin May Hit $38K Amid Israel-Iran Conflict

Two Coins to Stash During Times of Economic Distress

1. Bitcoin (BTC)

Bitcoin is dubbed the king of cryptocurrencies for a reason. The entire crypto market is governed by Bitcoin.

The way BTC moves and maneuvers determines the price path of different altcoins. With the looming Israel-Iran War crisis, the speculatory spree on X hints at a potential BTC dip. This dip, triggered by the war, may compel BTC to hit as low as $38K.

Since Bitcoin helms the entire crypto sector, the aforementioned price dip may be a lucrative time for investors to buy the precious coin before it shoots back up.

The crypto market is known for its volatility. The market tends to heal and recover with time, offering stellar returns. Hence, stashing Bitcoin during times of distress may prove beneficial in the long run.

According to CoinCodex, Bitcoin is also inching towards claiming $100,000 by the end of 2024.

“Bitcoin is forecast to trade within a range of $59,028 and $110,376. If it reaches the upper price target, BTC could increase by 89.01% and reach $110,376.”

Also Read: Crypto Events: Stay Ahead by Watching Key Events This Week

2. Ethereum (ETH)

Ethereum is another notable cryptocurrency that tends to maintain calm during acute economic distress.

Considering its long-term benefits, the ETH ecosystem is often dubbed a beacon of hope. Its underlying technology and its potential to replicate real-life use cases make Ethereum a great coin to stash during times of economic stress.

As the second largest cryptocurrency by market cap, Ethereum has stretched its roots far and wide, which makes it a coin worth stashing during times of significant geopolitical change.

Bitcoin and Ethereum are two coins that run the sector in its entirety. Once the fluctuations subside, these coins will be the first to amass gains, helping their holders avail significant returns.

According to CoinCodex, Ethereum may see a significant price uptick by the end of 2024. ETH may trade at a staggering price level of $4,136.16.

Also Read: ASEAN Limits Chinese Imports: Impact on Chinese Yuan?

“Ethereum is forecast to trade within a range of $2,547.81 and $4,136.16. If it reaches the upper price target, ETH could increase by 60.57% and reach $4,136.16.”