A lawsuit has been filed in New York, USA against the cryptocurrency mining company AWS Mining and the exchange NovaTech, involving an amount exceeding 1 billion dollars

ChainCatcher news, according to Decrypt, New York Attorney General Letitia James has filed a lawsuit against two cryptocurrency companies suspected of fraud in the state, accusing them of deceiving hundreds of thousands of investors, with the amount involved exceeding $1 billion.

The companies being sued include the cryptocurrency exchange NovaTech and the mining company AWS Mining, which are accused of "engaging in illegal pyramid schemes," having stolen over $1 billion in cryptocurrency from investors, including 11,000 New Yorkers. Letitia James stated that she would ban these two companies from operating in New York and vowed to crack down on cryptocurrency fraudsters.

AWS Mining and its promoters (including Panama residents Cynthia and Eddy Petion) had promised investors high returns through cryptocurrency mining operations, but in reality, the company could not sustain the promised returns in the long term and ultimately collapsed in 2019. Afterward, the Petion couple launched NovaTech, continuing to use similar strategies to attract customers, but the profits for investors were actually generated from the funds of new investors. Prosecutors revealed that the platform only processed $26 million in cryptocurrency transactions from 2019 to 2023.