Cynthia Petion, CEO of the cryptocurrency investment platform NovaTechFX, is facing a lawsuit from the New York Attorney General Letitia James for allegedly orchestrating a billion-dollar scam that targeted Christian immigrants. The lawsuit, filed in a Manhattan state court, accuses Petion and her husband Eddy of defrauding tens of thousands of investors through a Ponzi scheme that promised extravagant returns but only used a fraction of the funds for actual trading.
The scheme, which came crashing down in May 2023, reportedly amassed $1 billion in investments, with a mere $26 million allocated to trading activities. The lawsuit also implicates AWS Mining Pty Ltd., another company promoted by the Petions, which collapsed before NovaTechFX took center stage.
Petion's tactics allegedly exploited the Christian faith of Haitian immigrants living in the United States, utilizing prayer groups, social media, and messaging apps like WhatsApp to lure in unsuspecting victims. By presenting her scam as a pathway to financial prosperity intertwined with religious language, Petion managed to gain the trust of her targets. She even went as far as adopting the title of "Reverend CEO" and invoking divine inspiration for her business venture.
Behind closed doors, however, a different persona emerged. Referred to as the "Zookeeper," Petion allegedly belittled her victims, mocking them as members of a "cult" who unquestioningly followed her lead. Attorney General James condemned the exploitation of immigrant and religious communities, describing the companies as pyramid schemes that preyed on vulnerable individuals seeking financial freedom.
NovaTechFX operated as a Ponzi scheme, where deposits from new investors were used to pay artificial profits to earlier investors. The lawsuit alleges that nearly 75% of the $1 billion raised went towards sustaining this fraudulent cycle. By targeting those most financially unstable and least able to withstand losses, Petion propagated her schemes with promises of liberation from economic hardships, effectively preying on the vulnerable for personal gain.
Regulatory bodies in Washington and Wisconsin took action against the Petions in 2022, issuing cease-and-desist orders due to their unlicensed solicitation of investments. Internationally, NovaTechFX faced opposition from various countries and territories, signaling the extent of the scam's reach. As concerns grew, the Petions fled the United States, selling their Florida home and relocating to Panama shortly before NovaTechFX collapsed.
In response to a subsequent $2 billion class action securities fraud lawsuit filed by victims in early 2024, Cynthia Petion attempted damage control through social media. Claiming to be working diligently to address the situation and ensure customer satisfaction, Petion urged investors to contact the company for manual payouts. However, reports indicated that communication channels had long been ignored, casting doubt on the sincerity of her message.
The fallout from the NovaTechFX scandal resulted in a comprehensive lawsuit involving 12 defendants, including the Petions and other promoters. Seeking civil damages, victim restitution, and a ban on future investment sales in the state, the legal action aims to hold the perpetrators accountable for their exploitation of innocent investors.
The case of NovaTechFX serves as a cautionary tale of the dangers posed by fraudulent schemes in the cryptocurrency realm. By preying on the vulnerable and leveraging religious sentiment for personal gain, individuals like Cynthia Petion perpetuate financial harm and erode the trust placed in legitimate investment opportunities. As legal proceedings unfold, it is essential to uphold transparency and accountability in the financial sector to safeguard investors and prevent similar scams from taking root.
