The SEC formally charged NovaTech, along with its founders Cynthia and Eddy Petion, and several promoters, with fraud on August 12, 2024. According to the complaint, NovaTech raised over $650 million from more than 200,000 investors worldwide, primarily through an apparent Ponzi scheme. The company claimed to invest these funds in crypto assets and forex markets, promising investors profits from the outset. However, the SEC alleges that most of the funds were used to pay existing investors and promoters, while only a small portion was actually invested. The charges also include claims that the Petitions funnelled investor money for personal use. The fraud disproportionately affected the Haitian community in New York City.In addition to the SEC’s charges, the New York Attorney General also filed a lawsuit against NovaTech earlier this year, targeting the company, its founders, and AWS Mining, which is now defunct, for defrauding over 11,000 New Yorkers​.