Crypto Schemes Promoters Sued Over $1 Billion Alleged Losses
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The New York attorney general has sued two companies and their promoters over alleged defrauding of investors of more than $1 billion. AWS Mining, with promises of a 200% guaranteed return, collapsed in April 2019, followed by the second most enormous fraud, NovaTech. Investors had deposited over $1 billion worth of crypto with NovaTech from August 2019 through April 2023, while only $26 million was ever traded on the platform. Each was a pyramid scheme where promoters who invested in the platforms earned cryptocurrencies and recruited others to do the same. NovaTech was also described as a Ponzi scheme.
