The Office of the Attorney General of the State of New York (NYAG), represented by its head Letitia James, filed a lawsuit against NovaTechFx and AWS Mining on charges of fraud and deception of investors.
We're suing cryptocurrency companies @novatechfx and AWS Mining for defrauding investors out of over one billion dollars.
They used prayer groups and social media apps to target Haitian and other immigrant communities, promising them big returns. Instead, they stole their money.
According to the report, the companies worked on the principle of a financial pyramid, their victims were more than 11,000 New Yorkers. The schemes mainly targeted religious communities as well as Haitian immigrants.
The total amount of damage exceeded $ 1 billion, NYAG said.
"We see the real danger of unregulated cryptocurrency platforms with similar schemes, but New Yorkers can be confident that we will use the tools at our disposal to combat fraudsters," the statement said.
James intends to achieve a ban on companies and their founders from conducting any business related to securities, imposing fines and compensation for damages.
Recall that in May, the prosecutor's Office of the Northern District of California charged three former top managers of the Cred crypto lending platform with conspiracy to launder money and fraud in the amount of $783 million.