Lawsuit Filed Against Crypto Companies for Alleged Pyramid Scheme Affecting Over 3,500 Long Island Residents

New York’s Attorney General, Letitia James, has initiated legal action against two crypto trading entities, alleging they conducted unlawful Ponzi schemes. These schemes are believed to have swindled vast numbers of investors—including upwards of 3,500 from Long Island—out of in excess of $1 billion in digital currency.

The legal filing, which took place on Thursday at the Supreme Court of New York County, details that James aims to prevent AWS Mining Pty Ltd., NovaTechFx, and their founders from maintaining any operational presence within the state. Additionally, James is seeking restitution for the defrauded individuals and the recovery of any ill-gotten gains linked to the fraudulent operations.

James expressed in a declaration that these crypto entities preyed upon immigrant and faith-based groups with assurances of economic empowerment, yet ultimately pillaged their funds and depleted their savings.

As of now, neither of the implicated companies has conveyed a response to the inquiries for comment that were dispatched via their website contact forms.

In the attorney general’s claim, it is stated that AWS Mining originated in Australia while NovaTech had its registration in St. Vincent and the Grenadines prior to their dissolution. They were the brainchild of spouses Cynthia and Eddy Petion, who ventured into the domain of cryptocurrencies from varied professional backgrounds.

In an interview during April with Enterpreneur, Cynthia Petion portrayed herself as both a mentor and a preacher, conducting religious services in Florida weekly. Eddy Petion’s 2021 interaction with Thrive Global depicted him as an Army ex-serviceman and erstwhile mortgage loan professional.

The legal complaint from James asserts that the Petion’s ventures conned roughly 11,000 individuals from across Long Island, New York City, and several other counties, by baiting investors with grandiose profit assurances and inducement bonuses that were never realized. The entities specifically preyed on ethnic minorities, notably Haitians, engaging with them in religious congregations and social media chatrooms, using religious overtures and messages in Creole to lure them in.

The filing purports that after AWS Mining defaulted on its investor commitments in 2019, the Petions established NovaTech. Once more, they offered weekly returns on investments that were, in reality, funded by incoming capital from fresh investors. NovaTech met its demise the following May, immobilizing the crypto holdings of vast numbers of its customers.

In summary, the lawsuit contends that those who placed their finances into the Petion’s trading programs faced substantial monetary losses amounting to millions.

No court date has thus far been assigned in this ongoing legal matter.

This lawsuit constitutes one amongst a series of stringent enforcement actions aimed at crypto firms, which has been a focal point for James’ office. Her office accomplished a $2 billion recompense for investors defrauded by Genesis Global Capital the prior month, and throughout the past year, James secured in excess of $50 million through settlements, decrees, and additional enforcement actions involving crypto companies engaged in deception.