$1 Billion Crypto Scam Targeted Christian Immigrants
Photo by Kanchanara
Appealing to their Christian faith, Cynthia Petion promised investors returns of up to 200% in just one year through her cryptocurrency investment platform, NovaTechFX (Novatech).
Four years later, in May 2023, NovaTechFX collapsed.
Now New York Attorney General Letitia James is suing Petion, her husband Eddy and the defunct company for allegedly defrauding tens of thousands of investors through a ponzi scheme that raked in $1 billion but only used $26 million for trading.
Filed June 6 in a state court in Manhattan, the suit also names AWS Mining Pty Ltd., a similar scheme the Petions allegedly promoted until it collapsed prior to starting NovatechFX.
Using prayer groups, social media and WhatsApp to target Haitian immigrants to the United States, Petion allegedy gained their trust by cloaking her get-rich-quick scam in religious language. James said Petion dubbed herself “Reverend CEO,” claimed the idea for NovatechFX came to her like a “vision from God,” and declared that “Jesus was the best affiliate marketer in the world.”
Meanwhile, the suit alleges that behind closed doors, Petion called herself the “Zookeeper” and mocked her victims as a “cult” where “they just agree with everything you say.”
“These cryptocurrency companies targeted immigrant and religious communities with promises of financial freedom but instead stole their money and drained their life savings,” James said in a statement.
James depicted both companies as pyramid schemes that paid bonuses to recruit new investors and said NovaTech was also a Ponzi scheme in which the deposits from newer investors were used to pay “profits” to older investors. Nearly three-quarters of the $1 billion in deposits allegedly went toward that purpose.
“The defendants marketed to investors most in need of income and least able to afford a loss by advertising their schemes as a train to ‘financial freedom’ and ‘freedom from the plantation,'” the suit said. “Cynthia Petion knew that ‘it’s never the ones who grew up rich who invest in these programs.'”
In 2022, regulators in Washington and Wisconsin sent cease-and-desist orders to the Petions because they were not licensed to solicit investments in those states. The couple’s business venture also raised concerns internationally, prompting Russia, South Africa, Estonia, Nigeria, St. Vincent and the Grenadines, the British Virgin Islands and multiple Canadian provinces to try to block NovaTechFX.
Shortly before the business collapsed, taking thousands of people’s investments with it, the Petions sold their Florida home and moved to Panama, James said.
Then in early 2024, a $2 billion class action securities fraud lawsuit was filed by victims of the alleged scam, prompting a response from Cynthia Petion on Instagram.
“Every day we are working diligently to address this issue and ensure the continued trust and satisfaction of our customers,” Petion wrote. “If your funds are still held within our platform, we encourage you to reach out to us directly so that we can process your payout manually.”
However, replies to the Instagram post indicated the company had been ignoring messages for months.
The New York lawsuit includes a total of 12 defendants, including the Petions and other promoters, and seeks civil damages, victim restitution and a permanent ban from selling investments in the state.
This piece is republished from MinistryWatch with permission.
Tony Mator graduated from Geneva College with a B.A. in creative writing. He has written for several newspapers and magazines.