New York Attorney General seeks $1.3 billion from NovaTech pyramid

The New York Attorney General's office is seeking to recover more than $1.3 billion from the founders of the cryptocurrency pyramid scheme NovaTech. The scheme operated from August 2019 to April 2023.

How investors were deceived

The company attracted clients through social media, religious communities, and the WhatsApp messenger. Investors were promised weekly returns of 2% to 4%.

• Total funds raised exceeded $1 billion
• Actual trading activity amounted to less than $26 million
• The lawsuit against the project's founders totaled $1.3 billion

In May 2023, the structure collapsed, leaving tens of thousands of depositors without access to their funds. Four participants in the scheme have already agreed to return nearly $6 million.

Individuals who returned money received a lifetime ban from working in the cryptocurrency industry. The Attorney General's office continues to investigate the activities of NovaTech's founders.