New York's Attorney General, Letitia James, has taken decisive legal action against two cryptocurrency entities, NovaTech and AWS Mining, accusing them of orchestrating a massive pyramid scheme totaling $1 billion. In a recent press release, James announced the filing of a lawsuit, highlighting the alleged fraudulent activities that impacted numerous customers, including over 11,000 individuals from New York.

The lawsuit contends that between 2019 and 2023, NovaTech and AWS Mining utilized various means, such as prayer groups, social media platforms, and WhatsApp chats, to entice investors with promises of substantial returns on their investments. However, upon investigation, it was revealed that out of the $1 billion collected, a mere $26 million was allocated for actual digital asset trading on NovaTech's crypto exchange.

Letitia James emphasized the deceptive tactics employed by these companies, particularly targeting immigrant and religious communities with false promises of financial prosperity. The lawsuit underscores the dangers posed by unregulated cryptocurrency platforms and aims to hold accountable those responsible for exploiting unsuspecting investors.

AWS Mining, which claimed to generate high returns through crypto asset mining activities, faced collapse in 2019 due to financial insolvency, leading to an inability to repay investors. Similarly, NovaTech, in a bid to conceal its wrongdoing, resorted to fictitious weekly payments until its eventual collapse in 2023, leaving investors unable to access their funds.

The legal action initiated by James seeks not only to prohibit NovaTech and AWS Mining, along with their founders, from engaging in any securities or commodities-related business in New York but also aims for disgorgement of ill-gotten gains and compensation for damages incurred by defrauded investors. This lawsuit underscores the commitment of regulatory authorities to crack down on fraudulent activities within the cryptocurrency space and protect investors from such schemes.