3rd NovaTech FX securities fraud warning from Canada (ONT)
The Ontario Securities Commission has issued a NovaTech FX securities fraud warning.
As per the OSC’s December 13th warning, NovaTech FX, operating as Novatech LTD,
is not registered in Ontario to engage in the business of trading in securities.
This is the equivalent of a securities fraud warning in other jurisdictions.
The OSC is the third Canadian regulator to take action against NovaTech FX. Similar securities fraud warnings have also been issued by Alberta and British Columbia.
Outside of Canada Novatech FX has received securities fraud warnings from California and the Central Bank of Russia.
Increased regulatory attention on NovaTech FX coincides with founders Eddy and Cynthia Petion recently selling a property in Florida.
Following on from California, a federal US regulatory case against NovaTech FX is believed to be pending.
NovaTech FX, which pitches a weekly passive return, is run out of the US and has a majority US investor base.
Earlier this month, Cynthia Petion represented she was in Milan, Italy on Instagram. Whether the Petions are still in the US is unclear.
Update 23rd February 2023 – The OSC is continuing to investigate NovaTech FX’s securities fraud.
As part of that investigation, on February 16th the OSC issued NovaTech FX with a cease trade order.
Withdraws are now taking longer than usual here… bonus account(refferal commissions) is out to 96hrs… used to be 24-48hrs…
Trading account[sic] is over 18 calendar days..
Thanks for keeping track. When the trading account hits a month (4 weeks) I think I’ll call it.
They’ve already started pulling NovaTech FX’s website down weekly to manipulate data. Big CashFX Group vibes.
@Oz, interested what you mean by manipulating data?
Also noticed that the USDT wallet that someone posted where withdrawals come from has went from ~$23 million (almost linear growth) to ~$9.5 million (straight drop) over the last week and a half.
I’ve also seen people in groups saying that they had to switch their withdrawal request from (insert coin) to Bitcoin after it was denied to get it to go through.
So definitely seems like withdrawals are exceeding deposits, and that at least for some coins the problem is getting significant.
That being said, still does appear that everyone gets paid at this point. Here’s hoping that ends soon.
Manipulating data in that the ROI is programmed in and whatever they need to do on the backend for the week, away from prying eyes, takes place.
The funny thing is all of that would be pushed off to databases and machine clusters which should be independent of the front-facing website.
As to what exactly they’re having to manipulate each week, all we know is it’s related to the backoffice because it’s taking longer and longer the more investors there are.
We’ll read the specific details when the SEC drops its Complaint.
@Oz, How do you know that the SEC will file a complaint? I guess it’s speculation at this point. Usually the SEC waits until “investors” have already been scammed.
They don’t usually come after a platform until it’s on the verge of collapsing or really way long after its collapse, right?
I’ve read a lot of the SEC responses in the articles here. Seems like they’re always “late to the party”, so to speak, well after the damages are done.
Regulation is reactionary. The only MLM Ponzi that got shut down before it collapsed I can remember is EminiFX.
Investors in Ponzi schemes are scammed the moment they invest. It’s not like everything is hunky dory until the money runs out. Math is math.
Call it over a decade of experience and covering who knows how many US regulatory Ponzi shutdowns. Once US states call out a large US-based Ponzi scheme with a majority US investor base, it’s over.
Other states and the SEC aren’t too far behind. The CFTC might also take a bite seeing as NovaTech’s ruse is forex trading.
We’ll either see charges filed before NovaTech collapses. Or the inevitable bank run will happen and then charges will be filed.
Also I don’t usually pull the “experience” card because it’s only a few steps up from “just trust me bro”.
Given all the factors surrounding NovaTech though this is shaping up to be a routine shutdown.
Unfortunately there’s a lot of first-time Ponzi shutdown investors in NovaTech. Many have active social media channels where they pull nonsense out of their ass.
It is what it is and we’ll be here to cover all of it when the time comes.
I’d add TrafficMonsoon to the list but only cos PayPal froze their account (possibly at the request of the SEC)…
AddSurfDaily… ZeekRewards and even 12DailyPro…
ASD Cash Generator was the first that got shut down before it collapsed. Eagle started working with the Secret Service mid-July and they shut it down mid-August.
To my knowledge, ASD victims were the only ones who got back 100% of their investment. The only reason why that happened was because all the major promoters tried to scare their downline into not filing for restitution.
They lied to them telling them if they did file, they would go to jail. When the only ones who were afraid they would be going to jail were the promoters.
Enough victims didn’t file so that so those who did got 100% of their investment back. If all had filed for restitution the return would have been about 60-75%
Word is that as of today members can no longer withdraw to ETH or USDT nor can members update/add new wallet address….
This effectively has locked members out of the cash out requests…
In other words it’s game over…
Just a correction that I updated my address and it worked on the 23rd.
I just requested a cash out and it says received and pending. It was to USDT.
Many members have pending withdraws fron 28th November….
You might be lucky and get it but the novatech ponzi scheme is imploding fast…
Novatech’s USDT wallet is now under $3.5 million. It had hit a high of $22.3 million on November 18th.
Detailed analysis of said wallet coming soon.
Any big finds in your analysis? Quickly approaching $3 million now.
USDT wallet is under $2 million now.
I know they probably have more Bitcoin than that (since they only started accepting USDT in May), but you’d have to think that a lot of the Bitcoin they brought in during their parabolic growth also lost a ton of value as crypto prices dell.
I’m kind of surprised that they haven’t pulled a runner yet. What’s the point of running a giant scam if you aren’t going to leave more than a few million for yourself?
I might be slightly off but the Petions haven’t been seen publicly since October (?). NovaTech FX support stopped responding around early November.
I think that’s all true. They definitely haven’t publicly addressed any member concerns.
But alas, they’re still paying for now. They need to stop that too soon if they want any left for themselves, no?
Wish someone would make their Bitcoin address public so we can see what’s still in there.
They sold their house in May and would have taken some time for closing…
Last seen in November… I doubt that they are still in America…
Novatech’s USDT wallet has rebounded from roughly $1 million back to $1.5 million.
However they haven’t paid out a single USDT withdrawal from the wallet in over 32 hours.
Will this be the official end? Stay tuned!
Bear in mind that USDT are themselves Ponzi points.
In order to convert it to actual money, either schmucks need to hand over 2 million real dollars for 2 million Tether (who still does that?) or an exchange needs to give you two million of their reserves (why would they do that?).
If you’re a crypto whale – Changpeng Zhao, Sam Bankman-Fried pre-incarceration, one of those guys – you can probably cash in 2 million Tether. But for a small time scam, one not in the “inner circle” and Telegram chats, it’s unlikely to be as simple as pressing a withdrawal button.
Never thought about that part of it. I don’t deal much with crypto, but makes sense that exchanges would flag large withdrawals if the Petions tried to liquidate.
It’s now been 52 hours since the last USDT payment was made out of the wallet. Tick tock.
Ponzis. They’re all the same.
STEP 1: The ponzi creator – who has often started other ponzis, all of which have failed – starts a new ponzi.
STEP 2: The “true believers” who are actually receiving money are willing to risk their reputation and bring other people in to the ponzi because they’re “living proof” that it works and that it therefore MUST be legit.
STEP 3: The ponzi guy starts to run out of money because new suckers become increasingly difficult to find.
STEP 4: The ponzi guy shuts off withdrawals, stating that there was a data processing problem, they were hacked, or they’re trying to be compliant.
STEP 5: The ponzi guy escapes to Dubai in the middle of the night, taking the funds with them.
Happens every time.