New York Attorney General Letitia James has filed a lawsuit against NovaTechFx, a crypto trading company, and AWS Mining, a digital asset mining company, for their alleged involvement in a massive cryptocurrency fraud scheme that defrauded over 11,000 individuals and hundreds of thousands of investors, resulting in losses exceeding a billion dollars.

The lawsuit alleges that NovaTechFx and AWS Mining organized illegal pyramid schemes that lured investors with promises of substantial returns on investments, predominantly targeting immigrant communities, including Haitian New Yorkers. The schemes were promoted through various channels, including prayer groups, social media platforms, and WhatsApp group chats.

According to the lawsuit, investors deposited over a billion dollars worth of cryptocurrency into NovaTech between 2019 and 2023, but only a fraction, less than $26 million, was actually traded on NovaTech's cryptocurrency trading platform during this period. The investigation revealed that the companies failed to generate sufficient returns to fulfill their promises, resulting in losses for investors when they collapsed.

Attorney General James emphasized the consequences of such activities on vulnerable communities, stating that thousands of New Yorkers were falsely promised better lives if they simply trusted NovaTech and AWS Mining with their money, but it was all a lie. She added that these cryptocurrency companies targeted immigrant and religious communities with promises of financial freedom but instead stole their money and drained their life savings.

The lawsuit seeks to prohibit AWS Mining, NovaTech, and their founders from conducting any business related to securities or commodities in New York and pursues disgorgement and damages to compensate the victims. The legal action is a significant step towards protecting vulnerable communities from exploitation and ensuring that those responsible for such fraudulent activities are held accountable.