The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against NovaTech Ltd. and its founders, Cynthia and Eddy Petion, alleging a massive $650 million crypto fraud scheme that targeted over 200,000 investors worldwide.

According to the SEC’s complaint, NovaTech operated as a multi-level marketing (MLM) and crypto asset investment program from 2019 to 2023. The company, along with its promoters, is accused of making false and misleading promises of high returns on investment through cryptocurrency trading.

The SEC alleges that the Petions and their associates used religious overtones and targeted specific affinity groups, including Haitian-American communities, to lure investors. They allegedly promised investors that their money would be safe and that they would profit from day one. However, the reality was far different.

The complaint states that the majority of the funds collected from new investors were used to pay returns to earlier investors and commissions to promoters. The Petions are also accused of siphoning millions of dollars for personal use.

The SEC is seeking to hold the defendants accountable for their alleged fraudulent activities and to return the stolen funds to investors. This case highlights the ongoing challenges of regulating the cryptocurrency industry and the importance of investor protection.

The SEC’s action comes as part of a broader crackdown on fraudulent cryptocurrency schemes. As the digital asset space continues to grow, regulators are facing increasing pressure to protect investors from scams and manipulation.