The Attorney General of New York is suing two crypto firms for their alleged role in a $1 billion pyramid scheme.
In a new press release, New York AG Letitia James announces a lawsuit against crypto exchange NovaTech and crypto mining company AWS Mining for allegedly defrauding hundreds of thousands of customers, 11,000 of which were New Yorkers.
According to the lawsuit, between 2019 and 2023, the firms allegedly used prayer groups, social media platforms and WhatsApp chats to promise high returns on investments.
However, an investigation found that out of the $1 billion they collected, only $26 million was being used to trade digital assets over NovaTech’s crypto exchange.
As stated by James,
“Thousands of New Yorkers were falsely promised better lives if they simply trusted NovaTech and AWS Mining with their money, but it was all a lie. These cryptocurrency companies targeted immigrant and religious communities with promises of financial freedom but instead stole their money and drained their life savings.
We are seeing the real dangers of unregulated cryptocurrency platforms with schemes like these, but New Yorkers can rest assured that we will use the tools at our disposal to crack down on crypto fraudsters.”
James’ lawsuit seeks to ban both firms and its founders from engaging in any business related to securities or commodities in New York as well as disgorgement and damages, according to the press release.
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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The Attorney General of New York, Letitia James, has filed a lawsuit against two cryptocurrency companies, NovaTech and AWS Mining, accusing them of running a $1 billion pyramid scheme. The lawsuit alleges that between 2019 and 2023, the firms misled hundreds of thousands of customers, including 11,000 New Yorkers, by promising high returns on investments through prayer groups, social media, and WhatsApp chats. An investigation revealed that only $26 million of the collected funds was actually used for trading digital assets. James stated that these companies preyed on immigrant and religious communities, ultimately stealing their money. The lawsuit seeks to ban the firms and their founders from securities or commodities business in New York and demands disgorgement and damages.
The Attorney General of New York is suing two crypto firms for their alleged role in a $1 billion pyramid scheme.
In a new press release, New York AG Letitia James announces a lawsuit against crypto exchange NovaTech and crypto mining company AWS Mining for allegedly defrauding hundreds of thousands of customers, 11,000 of which were New Yorkers.
According to the lawsuit, between 2019 and 2023, the firms allegedly used prayer groups, social media platforms and WhatsApp chats to promise high returns on investments.
However, an investigation found that out of the $1 billion they collected, only $26 million was being used to trade digital assets over NovaTech’s crypto exchange.
As stated by James,
“Thousands of New Yorkers were falsely promised better lives if they simply trusted NovaTech and AWS Mining with their money, but it was all a lie. These cryptocurrency companies targeted immigrant and religious communities with promises of financial freedom but instead stole their money and drained their life savings.
We are seeing the real dangers of unregulated cryptocurrency platforms with schemes like these, but New Yorkers can rest assured that we will use the tools at our disposal to crack down on crypto fraudsters.”
James’ lawsuit seeks to ban both firms and its founders from engaging in any business related to securities or commodities in New York as well as disgorgement and damages, according to the press release.
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney