NovaTech falsely advertised itself as a registered hedge fund broker licensed to trade crypto in the United States, promising returns of 2% to 4% weekly

Overview Debates Related claims Topics Sources

Investors deposited $1.16 billion in digital assets into NovaTech's wallet between August 2019 and May 2023, but NovaTech sent only $26 million to its trading provider B2Broker

Managing partner Chris Dixon stated that a16z Frontier will continue to invest in crypto ventures and advocate for sensible crypto regulation while expanding into broader frontier technologies

Before launching NovaTech in 2019, the Petions promoted AWS Mining, a crypto mining scheme promising 15% to 20% monthly returns that collapsed in 2019

Argentina's fintech chamber raised concerns that the sudden February 2025 LIBRA cryptocurrency collapse could constitute a rug pull scam targeting crypto investors

NovaTech targeted Haitian and immigrant communities worldwide using ads in Haitian Creole, social media, and WhatsApp prayer groups

NovaTech's traders lost approximately $18.2 million of the $26 million sent for trading, using incoming deposits from new investors to pay out weekly returns and recruitment bonuses

Cynthia Petion, the sole authorized user on NovaTech's investor account, authorized withdrawals of at least $134.5 million to wallets belonging to herself and Eddy Petion

All four NovaTech promoters agreed to permanent bans from the securities, commodities, and cryptocurrency industries

More than 11,000 New Yorkers put money into NovaTech and AWS Mining before NovaTech collapsed in May 2023 and locked investors out of withdrawals

New York investors lost tens of millions of dollars after putting money into NovaTech and the Petions' AWS Mining scheme

On October 22, 2026, Senator Richard Blumenthal sent letters demanding business records from Tether CEO Paolo Ardoino and Nxum Group regarding the $6.3 million in payments made to Nxum Group

Senator Richard Blumenthal set a deadline of November 3, 2026 for Tether and consulting firm Nxum Group to turn over contracts, payment details, and communications

Lighter plans to file for Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO) licenses with the Commodity Futures Trading Commission in November 2026

Under the finalized Genius Act regulatory framework, stablecoin issuers are prohibited from paying direct interest on yield generated from Treasury bills

The Office of the Comptroller of the Currency's finalized rules evaluate stablecoin customer reward programs on a case-by-case basis

The United States Office of the Comptroller of the Currency finalized implementation rules for the Genius Act

On the launch day of PaperTrade, a trader executed $10 million to $20 million market orders on Hyperliquid to move Ethereum perpetual prices

The PaperTrade team stated that transferable PAPER tokens would enable attackers to profit by combining price manipulation with PAPER short positions

A trader exploited the correlation between Hyperliquid's order book and PaperTrade's price feed to profit from Ethereum short positions

Judge Alvin K. Hellerstein ruled under Federal Rule of Civil Procedure 60 that newly acquired knowledge of facts existing when the January 2025 consent order was entered does not constitute a significant change in factual circumstances