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Important information

• Pending Government Action:

  Government Action: BBB reports on known government actions involving business’ marketplace conduct:

  Ontario Securities Commission. IN THE MATTER OF NOVA TECH LTD TEMPORARY ORDER
  

  UPDATE As of September 28, 2023

  A hearing was held at the Capita Markets Tribunal which neither NovaTech nor their representatives attended.  A further attendance in this matter is scheduled for November 27, 2023, at 9:00 a.m., by videoconference, or on such other date and time as may be agreed to by the parties.

  LINK: https://www.capitalmarketstribunal.ca/sites/default/files/2023-09/rad_20230928_nova-tech-ltd.pdf

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  As of March 17, 2023

  Canadian securities regulators warn public about unregistered trading platform Nova Tech Ltd.

  The Canadian Securities Administrators (CSA) is warning the public that Nova Tech Ltd (NovaTech), which operates the website www.novatechfx.com, is not registered with a securities regulator in any province or territory in Canada. This means they are not authorized to offer trading in any securities or derivatives to anyone located in Canada.
  
  NovaTech may be operating in breach of provincial and territorial securities and derivatives law, including provisions related to unregulated trading and the illegal distribution of securities. NovaTech appears to offer investment products and trading services through its website. On February 5, 2023, NovaTech announced a temporary freeze in trading account withdrawals for a period of 60 days.
  
  On March 2, 2023, the Capital Markets Tribunal (Ontario) extended a cease trade order issued by the Ontario Securities Commission, which requires, among other things, that NovaTech temporarily ceases all trading in any securities.
  
  Anyone trading securities or derivatives or providing investment advice in relation to securities and derivatives in Canada, including platforms that facilitate the trading of products based on forex and crypto assets, must comply with applicable securities or derivatives legislation. Investors should always check the registration of any person or business trying to sell them an investment or give them investment advice. To do this, investors can visit AreTheyRegistered.ca.
  
  Canadian investors who have been approached by NovaTech or purchased its investment products can contact their provincial or territorial securities regulator.
  
  For further information: For media inquiries, please contact: Ilana Kelemen, Canadian Securities Administrators, [email protected]; JP Vecsi, Ontario Securities Commission, [email protected]

  Link: https://www.newswire.ca/news-releases/canadian-securities-regulators-warn-public-about-unregistered-trading-platform-nova-tech-ltd-863132144.html
  
  
  
  

  
  

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• Pending Government Action:

  Government Action: BBB reports on known government actions involving business’ marketplace conduct:

  People of the State of New York vs NovaTech LTD. Supreme Court of the State of New York, County of New York
  

  As of June 6, 2024

  New York Attorney General Letitia James sued cryptocurrency trading company NovaTechFx (NovaTech), its founders Cynthia and Eddy Petion, and cryptocurrency mining company AWS Mining Pty Ltd. (AWS Mining), for engaging in illegal pyramid schemes that defrauded hundreds of thousands of investors, including over 11,000 New Yorkers, of over a billion dollars’ worth of cryptocurrency. The lawsuit alleges that the companies targeted immigrant communities, particularly Haitian New Yorkers, in prayer groups and through social media and WhatsApp group chats with fraudulent promises of high returns on investments, but never actually made the promised profits. An investigation by the Office of the Attorney General (OAG) found that from 2019 to 2023, investors deposited over one billion dollars’ worth of cryptocurrency in NovaTech but only a fraction, less than $26 million, was actually traded on NovaTech’s cryptocurrency trading platform. Attorney General James seeks to ban AWS Mining, NovaTech, and its founders from doing business in New York and to secure disgorgement and damages.

  More than 11,000 New Yorkers from New York City, Westchester, Long Island, and Rockland and Orange counties invested in NovaTech and AWS Mining and lost tens of millions of dollars. The lawsuit alleges that AWS Mining was a fraudulent scheme that claimed to generate high returns for investors by mining cryptocurrency, the process by which specialized computers verify transactions in cryptocurrency and generate new cryptocurrency. AWS Mining and its promoters, Cynthia and Eddy Petion, James Corbett, Martin Zizi, and Frantz Ciceron, promised investors 15 to 20 percent monthly returns, 200 percent returns on investments within 15 months, and bonuses for recruiting new investors. However, the company did not generate enough returns to pay the promised monthly profits and recruitment bonuses and eventually collapsed in 2019, causing millions of dollars in losses to investors.
  
  After the collapse of AWS Mining, Cynthia and Eddy Petion started their own cryptocurrency company, NovaTech, and relied on recruiting new investors with promises of high returns and generous recruitment bonuses. They targeted minority communities, Haitians in particular, in prayer groups and WhatsApp group chats with advertisements in Creole, and religious messages that appealed to their faith. They falsely marketed NovaTech as a registered hedge fund broker, misrepresented that NovaTech was licensed to trade cryptocurrency in the U.S., advertised high profits from trading of approximately two to four percent per week, promoted recruitment bonuses, and promised that investors could withdraw their funds and profits at any time.
  
  From August 2019 through April 2023, investors deposited over one billion dollars’ worth of cryptocurrency with NovaTech. However, only less than $26 million was ever traded on NovaTech’s trading platform. The lawsuit alleges that throughout the entirety of the scheme, regardless of market conditions, NovaTech announced that it paid investors weekly trading profits. However, the weekly profits were made up and the payments came from other investors’ money. NovaTech collapsed in May 2023, and tens of thousands of investors were unable to withdraw their cryptocurrency.

  Through her action, Attorney General James seeks to stop AWS Mining, NovaTech, and its founders and promoters from engaging in any business related to securities or commodities in New York. Attorney General James is also seeking disgorgement and damages.

  Link: https://ag.ny.gov/press-release/2024/attorney-general-james-sues-cryptocurrency-companies-novatechfx-and-aws-mining

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