NovaTech: The pyramid raised $1 billion but spent only $26

The NovaTech cryptocurrency pyramid, based in New York, attracted more than $1 billion from investors. However, less than $26 million was spent on real trading operations.

The scheme operated from August 2019 to April 2023. The company promised high returns of 2–4% per week and used social media, religious communities, and the WhatsApp messenger to attract clients.

May 2023 marked the collapse of the project. Tens of thousands of investors were left without access to their funds after the structure ceased to function.

The New York Attorney General is seeking $1.3 billion from the founders of NovaTech. Four other participants agreed to return nearly $6 million and received a lifetime ban from working in the crypto industry.