SEC charges NovaTech founders, promoters with $650 million crypto fraud
Summary
The US SEC charged NovaTech Ltd., its founders, and promoters for running a fraudulent scheme that raised over $650 million from 200,000 investors worldwide. The company posed as a legitimate multi-level marketing firm, promising profits from crypto and forex investments. Instead, the founders used the funds to pay existing investors and for personal use. Several top promoters were also charged for recruiting new investors despite being aware of regulatory actions. The SEC seeks injunctive relief, disgorgement of gains, and civil penalties against all defendants. One promoter has agreed to partially settle the charges.
