New York Attorney General Letitia James has taken legal action against two crypto companies and their leading promoters, Cynthia and Eddy Petion, alleging that they operated successive pyramid schemes targeting predominantly Creole-speaking church-goers, especially Haitian immigrants in the U.S. The lawsuit filed highlights the schemes run by AWS Mining and NovaTechFX, accusing them of deceiving investors and causing losses exceeding $1 billion.

The first scheme, AWS Mining, an Australian entity, operated between 2017 and 2019, promising investors a 200% return on their investment within 13-15 months through cryptocurrency mining. The company reportedly lured investors through WhatsApp group chats, leveraging the trust and community ties within Creole-speaking church communities. Promoters like Cynthia and Eddy Petion, based in Panama but originally from Florida, allegedly received substantial rewards, including a 10% share of new investments from recruits, along with bonuses and honorary titles.

The second alleged scheme, NovaTechFX, continued the fraudulent practices, promising unrealistic returns and targeting vulnerable immigrant communities. The New York Attorney General's office asserts that both schemes misrepresented investment opportunities, failed to deliver promised returns, and operated as classic pyramid schemes, relying on new investor funds to pay earlier investors.

The legal action underscores the importance of investor protection and transparency in the cryptocurrency space, especially concerning vulnerable populations who may be susceptible to fraudulent schemes. The lawsuit seeks to hold accountable those responsible for exploiting trust and misrepresenting financial opportunities, aiming to recover funds for defrauded investors and prevent further harm.

The case serves as a reminder of the risks associated with unregulated investments and the importance of due diligence before committing funds. It also highlights the role of regulatory bodies in monitoring and addressing fraudulent activities within the crypto industry to safeguard investor interests and maintain market integrity.