SEC Targets NovaTech and Leaders in $650 Million Global Crypto Scheme

The Securities and Exchange Commission (SEC) has filed charges against NovaTech Ltd., its founders Cynthia and Eddy Petion, and several key promoters for orchestrating a $650 million cryptocurrency fraud that ensnared more than 200,000 investors globally. The scheme, which ran from 2019 to 2023, was marketed as a multi-level marketing (MLM) and crypto asset investment program, with assurances of safe, profitable returns.

However, the SEC alleges that NovaTech operated as a classic Ponzi scheme, using new investments to pay returns to earlier investors while siphoning millions for personal use. Promoters continued to recruit new investors despite regulatory warnings, leading to significant financial losses when the scheme collapsed. The SEC is seeking disgorgement of profits, civil penalties, and permanent injunctions against the defendants.