• Press Releases
    • Submit a press release
    • Read All
  • Contact us
Advertise
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Breaking News: FTX Trust Sues Genesis To Recover $1 Billion Allegedly Misappropriated By SBF
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Bitcoinist.com
No Result
View All Result
Breaking News: FTX Trust Sues Genesis To Recover $1 Billion Allegedly Misappropriated By SBF
Abra

SEC Alleges $650 Million Crypto Pyramid Scheme By NovaTech Founders

Ronaldo Marquez
by Ronaldo Marquez
1 year ago
·
Posted in Crypto News
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

On Monday, the US Securities and Exchange Commission (SEC) filed a lawsuit against NovaTech, an alleged crypto pyramid scheme, and eight of its promoters. 

In the lawsuit, the regulator accuses them of perpetrating fraud and violating federal securities laws in a scheme that raised more than $650 million in crypto assets from more than 200,000 investors worldwide, a significant number of whom were from the Haitian-American community.

NovaTech Scandal Exposed

The primary targets of the SEC’s charges are Cynthia and Eddy Petion, alongside their company, NovaTech. The SEC alleges that the Petions orchestrated a “fraudulent operation” under the guise of a multi-level marketing (MLM) and crypto asset investment program between 2019 and 2023. 

Related Reading: Largest Public Bitcoin Miner To Raise $250 Million For Massive BTC Acquisition

It is alleged that the company’s founders lured investors by falsely claiming that NovaTech would invest their funds in crypto assets and foreign exchange markets, assuring them of safety and immediate profitability.

In reality, the SEC found that NovaTech predominantly used investor funds to pay existing investors and promoters, allocating only a fraction of the funds towards actual trading activities. 

The complaint further asserts that the Petions misappropriated millions of dollars for personal gain. When NovaTech inevitably collapsed, most investors found themselves unable to retrieve their investments, resulting in substantial financial losses.

Founders Charged For Fraudulent Crypto Scheme

Eric Werner, Director of the SEC’s Fort Worth Regional Office, condemned NovaTech’s actions, stating that the scheme inflicted “immeasurable losses” on a multitude of victims worldwide. Werner stated:

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.

The SEC’s complaint also implicates NovaTech’s top promoters—Zizi, Dunbar, Corbett, Sampson, Garofano, and Hadley—for their “active recruitment” of investors and promoters, earning substantial commissions in the process. 

Despite being aware of “concerning red flags,” such as regulatory actions taken against NovaTech by US and Canadian authorities, it is alleged that these promoters continued to recruit investors while “downplaying the risks.”

Related Reading: Dogecoin Vs. Shiba Inu: Lead Dev Reveals Why SHIB Is The Dominant Choice

The legal action, filed in the US District Court for the Southern District of Florida, charges NovaTech, the Petions, and the promoters with violating antifraud provisions of federal securities laws and registration violations. The SEC seeks permanent injunctive relief, disgorgement of illicit gains, and civil penalties to rectify the damages caused by the scheme.

Crypto
The 1D chart shows the total crypto market cap’s valuation. Source: TOTAL on TradingView.com

At the time of writing, the total crypto market capitalization is valued at $2 trillion after hitting a monthly low of $1.69 trillion last week. Bitcoin, the largest cryptocurrency on the market, has consolidated above the $59,000 mark in recent hours after recording a 1% drop from the $60,000 mark in the same time frame. 

Featured image from DALL-E, chart from TradingView.com

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
Ronaldo Marquez

Ronaldo Marquez

Follow

Ronaldo is a seasoned crypto enthusiast with over four years of experience in the field. He is passionate about exploring the vast and dynamic world of decentralized finance (DeFi) and its practical applications for achieving economic sovereignty. Ronaldo is constantly seeking to expand his knowledge and expertise in the DeFi space, as he believes it holds tremendous potential for transforming the traditional financial landscape.

Full Profile

Related Posts

Crypto’s Q4 Sweet Spot: Legislation, Stablecoins and Rates Cut Fuel PEPENODE Presale

Crypto’s Q4 Sweet Spot: Legislation, Stablecoins and Rates Cut Fuel PEPENODE Presale

Just now
Saylor Says Bitcoin Will ‘Move Up Smartly Again’ – Next 1000x Cryptos According to Grok

Saylor Says Bitcoin Will ‘Move Up Smartly Again’ – Next 1000x Cryptos According to Grok

2 hours ago
Best Altcoins to Buy After Google Acquires Stake in Bitcoin Mining Company

Best Altcoins to Buy After Google Acquires Stake in Bitcoin Mining Company

4 hours ago
Next Crypto to Explode Live News Today: Timely Insights for Chart Sniffers (September 26)

Next Crypto to Explode Live News Today: Timely Insights for Chart Sniffers (September 26)

1 hour ago
Bitcoin Hyper ($HYPER) Live News Today: Latest Insights for Bitcoin Maxis (September 26)

Bitcoin Hyper ($HYPER) Live News Today: Latest Insights for Bitcoin Maxis (September 26)

1 hour ago
BTC Drops to $109K Amid ETF Slowdown; Bitcoin Hyper Whales Invest $117K in Two Days

BTC Drops to $109K Amid ETF Slowdown; Bitcoin Hyper Whales Invest $117K in Two Days

4 hours ago

Premium Sponsors

Press Releases

  • 上線倒計時:僅剩25天可搶購 Snorter Bot 代幣

    10 hours ago
  • 加密錢包掀起發幣熱潮 Best Wallet...

    2 days ago
  • Bitcoin Hyper

    ChatGPT предсказва следващата 1000x...

    3 days ago
  • Snorter надхвърли $4 милиона след...

    4 days ago
  • Experience the Next Chapter of Pickleball with the $PKL Token Presale.

    Experience the Next Chapter of Pickleball with the $PKL...

    1 week ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

About Us

  • Advertise
  • Contact us
  • Editorial Policy
  • Privacy Policy
© 2025 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
      • Crypto Betting
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Advertise

© 2025 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.