Alleging a startling $1 billion fraud, New York Attorney General Letitia James has sued two cryptocurrency firms, NovaTech Ltd and AWS Mining Pty Lt. Targeting not only the businesses but also their associates, the complaint presents a troubling picture of religious manipulation and exploited trust inside immigrant communities.
Targeting The Flock: Social Media Sermons And WhatsApp Whispers
Under the charismatic Cynthia Petion, who presented herself as the “Reverend CEO,” NovaTech LTD reportedly targeted Haitian and other immigrant populations. Using social media, prayer groups, and WhatsApp avenues of contact, they operated mostly in Creole. The lawsuit outlines a deliberate approach. Strong weapons to entice naive investors were trust in religious leaders and the appeal of financial freedom.
The other company listed in the lawsuit, AWS Mining Pty LTD, presented a supposedly profitable offer: treble investors’ contributions via bitcoin mining. But in 2019 this promise fell apart as the business blatantly failed to meet expectations.
Charge records state that both businesses ran Ponzi and conventional pyramid scams. Investors were encouraged to find fresh candidates, therefore generating a self-perpetuating loop that directed money to the top. A traditional Ponzi scheme method, NovaTech is further accused of paying purported earnings and bonuses to past investors using fresh investor monies.
Leaked texts present a somewhat disturbing picture. Petion reportedly called her investors a “cult-like following” in private correspondence. Her public image and her contemptuous private attitude clearly contrast to highlight the manipulative strategies used.
Unholy Alliance: The Crypto Wild West And Vulnerable Communities
Particularly for communities without the means to completely grasp the complexity and risks involved, the case reminds us sharply of the weaknesses in the bitcoin ecosystem. James, the Attorney General, underlined the serious hazards uncontrolled bitcoin networks create. She said, “these businesses,” “targeted immigrant and religious communities with promises of financial freedom but instead stole their money and drained their life savings.”
A Precedent For The Future?
The result of this case begs important issues. How may authorities effectively inform and empower immigrant groups on the dangers of unapproved financial products? How may the bitcoin sector itself promote more responsibility and openness to stop such exploitative practices from developing going forward? With billions of dollars maybe at risk, the responses will greatly affect the direction of cryptocurrencies as well as the communities they affect.
Featured image from Westend61, chart from TradingView