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
Cryptocurrency fraud costs Okaloosa County resident over $500k
Crypto
Scam Jam: Avoiding Modern Romance & Cryptocurrency Scams | FFXnow
The Fairfax Scam Jam unpacks two of the fastest‑growing threats: romance‑based investment schemes and cryptocurrency fraud. Scammers often initiate contact through friendly wrong‑number texts, dating apps, and social media, then spend weeks or months building trust. Once a relationship feels established, victims are encouraged to “invest” in cryptocurrency, gold, or foreign currency through fraudulent platforms operated by criminal organizations.
You’ll learn how these schemes operate step‑by‑step, the psychological tactics scammers use, and the financial and emotional devastation they leave behind. Presenters will share actionable tools for recognizing early warning signs, having preventative conversations with loved ones, reporting fraud, and recovering when possible. Whether you’re new to digital safety or a seasoned advocate, this year’s Scam Jam will give you the knowledge you need to stay a step ahead of scammers.
The 9th Annual Fairfax Scam Jam is a community collaboration between AARP Virginia and the Fairfax County Silver Shield Anti-Scam Program.
Resource Fair exhibitors will be on hand until 1 p.m.
Representatives from county, state and federal agencies will be available to answer your fraud and scam questions one-on-one.
Complimentary lunch is provided to registered guests.
Crypto
Wood County Sheriff’s Department pushes for cryptocurrency kiosk protections
WOOD COUNTY, Wis. (WSAW) – The Wood County Sheriff’s Department is hoping a bill that would protect victims from scams involving cryptocurrency kiosks will soon be signed into law. It passed with bipartisan support on Tuesday.
Scammers have used kiosks to take thousands of dollars from victims in north central Wisconsin. Scammers convince people to first deposit cash. It’s then turned into bitcoin and sent to scammers.
The Wood County Sheriff’s Department first received complaints about scams involving cryptocurrency kiosks three years ago. Since then, they’ve been investigating reports and testifying for change.
Sheriff Shawn Becker has been sounding the alarm.
“We did push, we did communicate, communicate with our law enforcement agencies, communicate with other legislators, anybody that would be willing to listen,” Becker said.
Legislation passes with bipartisan support
Lawmakers have been working to impose regulations on these kiosks. One element would require operators to reimburse victims.
“I’m hoping that we can go retroactively to the investigations that we’ve been handling and where we’ve kept the money at the sheriff’s department, and we can give it right back to that victim. And that’s going to be a great day, quite honestly,” Becker said.
The department has thousands of dollars in evidence they seized that they’ll be able to return to victims if the bill is signed into law.
The legislation also includes daily $1,000 transaction limits.
“That limitation is really going to be effective, because somebody can’t walk in there with $20,000 or even more and put it into the machine,” Becker said.
It also requires operators to add warning labels to kiosks. It also requires kiosks to be more than five feet away from ATMs.
“It took many, many people to be involved in this and understand it’s a process to create legislation and we’re there. And we’re really happy with the end result,” Becker said.
Becker also gave an update about a lawsuit from last year. A crypto vendor sued the department for seizing cash from their bitcoin machines. They’ve now settled. Becker said he didn’t agree with that, but it showed they needed to continue pushing for change.
AARP Wisconsin supporting legislation
Raj Shukla is the Wisconsin state director for AARP. He said this legislation does a lot to stop scammers in their tracks and protect victims, especially since it puts $1,000 daily transaction limits on kiosks.
“That means that people won’t be losing a lifetime’s worth of life savings in just a day. It provides for receipts for every transaction so that law enforcement can track transactions and find scammers faster,” Shukla said.
Shukla said the consumer protections that exist on ATMs don’t exist on cryptocurrency machines. He said this legislation levels the playing field.
Shukla is hoping the bill is signed into law this week. He said scams involving cryptocurrency are rampant right now.
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