JAKARTA - The United States Securities and Exchange Commission (SEC) has filed charges against Novatech Ltd. and its founders, Cynthia and Eddy Petion, on suspicion of running a crypto scam scheme worth US$650 million (Rp10 trillion).
These demands include allegations that Novatech operates a multi-level marketing-based crypto asset investment program (MLM), most of whose investor funds are used to pay existing investors and commissions to promoters, not invest according to their promises.
According to the SEC, this scheme runs from 2019 to 2023, where Novatech attracts investors with promises to benefit their funds through investing in crypto asset markets and foreign currencies. However, in reality, only a small part of the funds were actually invested, while the majority were misused to pay previous investors and promoter commissions.
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Apart from Cynthia and Eddy Petion, the SEC has also demanded several major Novatech promoters, including Martin Zizi, Dapilinu Dunbar, and James waste, for their role in expanding this scheme. These promoters are suspected of continuing to recruit investors despite already knowing signs of danger, including regulatory action against Novatech.
These lawsuits were filed in Florida's Southern District Court, with the SEC seeking penalties, returns of profits, and permanent orders against the defendants. One of the promoters, Martin Zizi, has agreed to settle part of the charges by paying a civil fine of 100,000 US Dollars (Rp 1.5 billion) and is willing to accept a permanent ban from future offenses, without acknowledging or denying the allegations.
Quoted from Bitcoin.com News, SEC Regional Office Director Fort Worth, Eric Werner, stated that Novatech and Petions' actions have caused countless losses to tens of thousands of victims worldwide.
"As we allege, this size of the MLM scheme requires promoters to move it, and today's actions show that we will hold the main architects of this grand scheme accountable, but also to promoters who spread their scams by illegally asking for victims".
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