SEC Charges NovaTech In $650 Million Crypto Fraud
Hi there Lucky Ali here and welcome back to my blog in this blog, we going to talk about the new SEC controversy with Novatech company and also we are going to discuss what is good or bad. The United States Securities and Exchange Commission which short form is SEC and it is filed a lawsuit today against crypto firm Novatek the co-founders Eddie Petion and Cynthia, why SEC do this? they were allegedly running a scheme to defraud more than $650 million from crypto investors globally, and it includes a significant number of Americans and Haitians.
The Security Exchange Commission's legal action, filed in Miami federal court which is a well-known court for such cases and located in miami, accuses Payday of misleading cryptocurrency investors with assurances of immediate profitability and earning and the assured safety of their crypto funds. Here we have to see what the SEC is saying so according to the Security Exchange Commission, NovaTech and Petions engaged in a 4-year pyramid scheme and this scheme culminated in the company’s collapse in May month 2023 year. So the exact case is They are accused of using incoming investments to pay off their investors and the shocking thing is they cover commission payments to promoters while funneling millions into their own pockets. LOL
You know The lawsuit follows a similar case launched in June 2024 by the New York Attorney General, Letitia James, and pursued Novatek and Passion for a fraud estimated at more than $1 billion. And obviously, $1 billion is not a small amount. These scams should be stopped otherwise they can harm our great crypto community so I can say this time SEC is doing good. I never praised SEC because of their bad actions but this time they are doing very well. And I can admit it.
We can't stop scams completely but we can reduce them and that is why lots of improvements are needed in our crypto industry. If we only rely on decentralization then we can get rid of scams but you can see there are lots of centralized firms in crypto that provide good crypto services and hold big userbases and this is why scams happen. That single person has control and that is why it's highly risky.
If you want to be saved always then stay away from greedy suspicious spam messages sent by unknown persons. greed is the real enemy. You have to be careful while holding your funds in centralized exchanges. Yes, it is good to trade there but never ever hold for the long term in centralized exchanges. Please share this on social media and also comment below Have a good day
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 | Hi I am lucky ali from gujarat, india. I am a crypto enthusiast, blogger, and SEO developer. I am always interested in learning new things and getting new experiences. You can find me on hive, twitter and discord (Lucky Ali#6343). Sharing is caring, Thank you hive family ♥ |
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