The post NY AG Sues Crypto Companies for Alleged $1 Billion Investor Scam appeared first on Coinpedia Fintech News
The New York attorney general has sued two companies and their promoters for allegedly defrauding investors of more than $1 billion. AWS Mining, which promised a 200% guaranteed return, collapsed in April 2019. This was followed by a second, larger fraud involving NovaTech. Investors deposited over $1 billion worth of cryptocurrency with NovaTech from August 2019 through April 2023, but only $26 million was ever traded on the platform. Both schemes were pyramid schemes, where promoters earned cryptocurrencies by recruiting others. Additionally, NovaTech was described as a Ponzi scheme.
