The US Securities and Exchange Commission (SEC) has filed a lawsuit against NovaTech, a crypto pyramid scheme, and eight of its promoters for fraud and violation of federal securities laws.
According to the SEC, NovaTech defrauded investors of approximately $650 million over a four-year period.
This lawsuit follows a similar one filed by the New York Attorney General two months ago against NovaTech's founders and another NovaTech-related Ponzi scheme.
The regulator alleges that NovaTech and its promoters targeted specific groups, such as Haitian Creole-speaking churchgoers, through WhatsApp groups and events, convincing more than 200,000 investors to invest a total of $650 million between 2019 and 2023, when the scheme collapsed.