NovaTechFx Faces Accusations of $1 Billion Fraud

NovaTechFx Faces Accusations of $1 Billion Fraud

Elena Costa
2 min read

NovaTechFx Accused of $1 Billion Pyramid Scheme, Targeting Haitian Immigrant Investors

Once a thriving financial platform, NovaTechFx now faces allegations of running a $1 billion pyramid scheme, as per the lawsuit filed by the New York attorney general. The company, which experienced a staggering 518% surge in website traffic in 2022, is accused of deceiving investors by falsely portraying itself as a registered hedge fund broker with global cryptocurrency trading licenses. Cynthia and Eddy Petion, the founders, are specifically accused of targeting Haitian immigrants through local prayer networks, employing deceptive methods to attract investors. Despite amassing over $1 billion between 2019 and 2023, NovaTechFx reportedly engaged in trading activities worth only $26 million, while the rest of the funds remained hoarded in the company's wallets. The attorney general's office is advocating for complete restitution for the duped investors, emphasizing the detrimental impact on immigrant and religious communities who were promised financial liberation.

Key Takeaways

  • NovaTechFx, formerly a rapidly expanding financial platform, faces allegations of orchestrating a $1 billion pyramid scheme.
  • Lawsuit filed by the New York attorney general targets NovaTechFx founders, Cynthia and Eddy Petion.
  • NovaTechFx allegedly misrepresented itself as a registered hedge fund broker with global cryptocurrency trading licenses.
  • The company leveraged local prayer circles to target Haitian immigrants for investment recruitment.
  • Despite accumulating over $1 billion, NovaTechFx reportedly only executed trading activities amounting to around $26 million, according to the attorney general's office.


The collapse of NovaTechFx sheds light on vulnerabilities in financial regulatory oversight and community trust. Accused of operating a $1 billion pyramid scheme, the firm's exploitation of Haitian immigrants through religious networks compounds financial and societal repercussions within these communities. Regulatory oversights enabled false claims of registration and trading capabilities, deceiving investors. Immediate ramifications encompass legal consequences for the founders and financial setbacks for investors, while enduring effects might encompass stricter regulations for financial platforms and diminished confidence in investment prospects within affected communities. The case underscores the urgency for robust regulatory frameworks and investor education.

Did You Know?

  • Pyramid Scheme: A deceptive business model where initial promoters recruit secondary promoters, who further recruit more promoters, promising payment from the joining fees of their recruits. This model is unsustainable as it necessitates an ever-growing number of recruits to sustain the payment structure, ultimately collapsing when new recruits are insufficient.
  • Hedge Fund Broker: A professional facilitating transactions for hedge funds, which are investment pools managed by financial experts utilizing advanced strategies to yield high returns. These brokers are required to be registered with regulatory entities for lawful operations, ensuring adherence to financial laws and regulations.
  • Global Cryptocurrency Trading Licenses: These licenses enable entities to legally trade cryptocurrencies across multiple jurisdictions. Each region may have distinct regulations and prerequisites for such licenses, ensuring that trading platforms function within the legal framework and comply with financial standards.

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