More than 11,000 New Yorkers were caught in a massive cryptocurrency investment scheme that promised extraordinary returns but ultimately left investors unable to recover their money. Now, New York Attorney General Letitia James has secured nearly $6 million from four promoters involved in the operation, with an additional $1.3 billion being sought from its founders.
According to an October 22 announcement from the New York Attorney General’s Office, the scheme operated through cryptocurrency companies NovaTechFx and AWS Mining, targeting immigrant and religious communities, particularly Haitian New Yorkers.
Investigators say the companies used promises of unusually high investment returns, recruitment bonuses, and misleading claims about cryptocurrency trading to attract investors.
The case highlights how financial scams can exploit trusted community relationships and why investors should question opportunities promising unusually consistent profits.
Crypto Scheme Promised Investors Returns of Up to 200%
The alleged fraud began with AWS Mining, a cryptocurrency mining company that promised investors monthly returns ranging from 15% to 20%.
Promoters also advertised returns of 200% within 15 months, along with bonuses for recruiting additional investors.
However, according to the Attorney General’s investigation, the company failed to generate sufficient profits to support those promises.
AWS Mining collapsed in 2019, leaving investors with millions of dollars in losses.
Following that collapse, Cynthia and Eddy Petion launched NovaTech, which investigators say continued using misleading investment promises and recruitment incentives.
Scammers Targeted Haitian Communities and Religious Groups
One particularly troubling aspect of the scheme was how promoters recruited investors.
According to the Attorney General’s Office, NovaTech and AWS Mining targeted Haitian and other immigrant communities through prayer groups, social media platforms, and WhatsApp conversations.
NovaTech advertisements appeared in Haitian Creole and incorporated religious messaging designed to appeal to potential investors’ faith and community connections.
The companies also encouraged existing participants to recruit friends, relatives, and other community members in exchange for financial bonuses.
These tactics demonstrate how investment fraud can spread through trusted social networks, making suspicious opportunities appear more credible than they actually are.
Investors Deposited More Than $1 Billion in Cryptocurrency
From August 2019 through April 2023, investors deposited more than $1 billion worth of cryptocurrency into NovaTech.
However, investigators found that less than $26 million was actually traded on the company’s trading platform.
NovaTech had promoted itself as a registered hedge fund broker and claimed it was licensed to trade cryptocurrency in the United States, representations the Attorney General’s Office determined were false.
The company also advertised trading profits of approximately 2% to 4% per week and promised that investors could withdraw their funds whenever they wanted.
When NovaTech collapsed in May 2023, tens of thousands of investors were unable to withdraw their cryptocurrency.
Four Promoters Agree to Pay Nearly $6 Million
The Attorney General’s Office announced settlements with four leading promoters who allegedly made misleading statements, acted as unregistered brokers, and participated in the illegal pyramid schemes.
The settlement amounts are:
- Martin Zizi: $2.9 million
- Frantz Ciceron: $2.05 million
- James Corbett: $750,000
- Ricardo Roy, Sr.: $275,861
Together, the payments total $5,975,861 and are intended to benefit victims of the schemes.
All four individuals have also been permanently banned from participating in the securities, commodities, and cryptocurrency industries.
Separately, the Attorney General is asking a court to order NovaTech founders Cynthia and Eddy Petion to pay $1.3 billion in damages and disgorgement following an August 2025 default judgment.
The proposed $1.3 billion award remains a court request, not money already recovered for investors.
What Investors Can Learn From This Cryptocurrency Scam
The NovaTech case illustrates several warning signs that investors should recognize before committing money to an unfamiliar opportunity.
Promises of unusually high or guaranteed returns deserve particular scrutiny, especially when promoters claim investments carry little risk.
Recruitment bonuses can also be a warning sign when a company’s business model depends heavily on bringing in new participants rather than generating legitimate investment profits.
The U.S. Securities and Exchange Commission’s Investor.gov website provides educational resources to help consumers identify investment fraud and research financial professionals.
Investors can also use the SEC’s Investment Adviser Public Disclosure database to research registered investment advisers and firms.
Before investing, consumers should independently verify a company’s claims, understand how returns are generated, and avoid making decisions solely because an opportunity is recommended by someone they trust.
What Victims of Investment Fraud Should Do
People who believe they lost money through NovaTech, AWS Mining, or another suspicious investment operation should preserve records of their transactions.
Useful documentation includes account statements, cryptocurrency wallet addresses, transaction histories, emails, messages, and promotional materials.
New York residents can contact the Attorney General’s Investor Protection Bureau to learn more about reporting suspected investment fraud.
Consumers should also be cautious about recovery scams, in which fraudsters contact previous victims and demand upfront payments to supposedly recover lost investments.
An announced settlement does not guarantee that every victim will receive full reimbursement, and affected investors should rely on official government communications for information about any potential recovery process.
A Costly Reminder That Investment Promises Aren’t Guarantees
The New York cryptocurrency case demonstrates how sophisticated financial schemes can exploit trust, community relationships, and the promise of financial security.
More than 11,000 New Yorkers lost tens of millions of dollars, while investors worldwide deposited more than $1 billion in cryptocurrency into NovaTech before its collapse.
Although the nearly $6 million settlement represents an enforcement victory, it accounts for only a portion of the losses reported by investors.
For anyone considering cryptocurrency or another high-return investment opportunity, the lesson is straightforward: verify the company, question extraordinary promises, and never invest money you cannot afford to lose.
Have you ever been approached about a cryptocurrency investment promising unusually high returns? What warning signs made you suspicious? Share your experiences in the comments.
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