The New York State Attorney General’s Office, led by Letitia James, has filed a lawsuit against NovaTechFx and AWS Mining, accusing them of fraud and deceiving investors.
We’re suing cryptocurrency companies @novatechfx and AWS Mining for defrauding investors out of over one billion dollars.
They used prayer groups and social media apps to target Haitian and other immigrant communities, promising them big returns. Instead, they stole their money.
— NY AG James (@NewYorkStateAG) June 6, 2024
According to a statement, the companies operated as a financial pyramid, victimizing over 11,000 New Yorkers. The schemes primarily targeted religious communities and Haitian immigrants.
The total damage exceeded $1 billion, as noted by the NYAG.
“We see the real danger of unregulated cryptocurrency platforms with such schemes, but New Yorkers can rest assured that we will use the tools at our disposal to combat fraudsters,” the statement reads.
James intends to seek a ban on the companies and their founders from conducting any securities-related business, impose fines, and secure restitution.
Earlier in May, the Northern District of California’s prosecutor charged three former top executives of the crypto lending platform Cred with conspiracy to commit money laundering and fraud amounting to $783 million.