NovaTech used an MLM scheme to lure investors from around the world, promising high returns.
The SEC also fined OTC Link LLC $1.19M for failing to file Suspicious Activity Reports over a three-year period.
The US
Securities and Exchange Commission (SEC)
has filed charges against cryptocurrency company NovaTech and its co-founders
for allegedly orchestrating a $650 million fraud scheme, while also fining
broker-dealer OTC Link LLC $1.19 million for anti-money laundering (AML)
violations.
SEC Charges NovaTech with
$650 Million Crypto Fraud
In a
complaint filed in the US District Court for the Southern District of Florida,
the SEC accused NovaTech and its married co-founders, Cynthia and Eddy Petion,
of defrauding over 200,000 investors worldwide through a multi-level marketing
(MLM) scheme. The company allegedly raised funds by promising to invest in
crypto assets and foreign exchange markets.
Eric Werner, SEC
“NovaTech
and the Petions caused untold losses to tens of thousands of victims around the
world,” said Eric Werner, Director of the SEC's Fort Worth Regional
Office. “As we allege, MLM schemes of this size require promoters to fuel
them, and today's action demonstrates that we will hold accountable not just
the principal architects of these massive schemes, but also promoters who
spread their fraud by unlawfully soliciting victims.”
The SEC
claims that instead of investing funds as promised, NovaTech used new investor
money to pay earlier investors and promoter commissions, while the Petions
allegedly siphoned millions for personal use. The scheme reportedly targeted
the Haitian-American community and operated from 2019 until its collapse in May
2023.
Six
NovaTech promoters were also charged for their roles in recruiting investors,
even after becoming aware of regulatory actions against the company. One
promoter, Martin Zizi, has agreed to pay a $100,000 civil penalty to settle the
charges partially.
This marks
another multimillion-dollar action by the SEC against a cryptocurrency company
recently. Two weeks ago, in collaboration with the Department of Justice (DoJ),
the Commission charged Nader Al-Naji, the founder of the cryptocurrency social
media platform BitClout, with wire fraud and the sale of unregistered
securities totaling $257 million.
OTC Link Fined for AML
Violations
In a
separate action, the SEC announced charges against OTC Link LLC for failing to
file Suspicious Activity Reports (SARs) over a three-year period. OTC Link,
which operates three alternative trading system platforms for over-the-counter
securities, allegedly lacked proper AML procedures to monitor transactions for
suspicious activity.
“Broker-dealers
are critical gatekeepers to the securities markets and must diligently monitor
for suspicious transactions,” said Tejal D. Shah, Associate Regional
Director of the SEC's New York Regional Office. “When firms like OTC Link
fail to file SARs, they deprive regulators and law enforcement of important
information about suspicious activity.”
OTC Link
agreed to pay a $1.19 million penalty and engage a compliance consultant to
review its AML policies without admitting or denying the SEC's findings.
Just last
week, the investment banking firm Piper Sandler agreed to pay $16 million in
civil penalties to resolve inquiries by U.S. regulators concerning its
record-keeping practices. Announced on Tuesday, this settlement represents a
further step in the ongoing enforcement of compliance with communication
standards on Wall Street.
The US
Securities and Exchange Commission (SEC)
has filed charges against cryptocurrency company NovaTech and its co-founders
for allegedly orchestrating a $650 million fraud scheme, while also fining
broker-dealer OTC Link LLC $1.19 million for anti-money laundering (AML)
violations.
SEC Charges NovaTech with
$650 Million Crypto Fraud
In a
complaint filed in the US District Court for the Southern District of Florida,
the SEC accused NovaTech and its married co-founders, Cynthia and Eddy Petion,
of defrauding over 200,000 investors worldwide through a multi-level marketing
(MLM) scheme. The company allegedly raised funds by promising to invest in
crypto assets and foreign exchange markets.
Eric Werner, SEC
“NovaTech
and the Petions caused untold losses to tens of thousands of victims around the
world,” said Eric Werner, Director of the SEC's Fort Worth Regional
Office. “As we allege, MLM schemes of this size require promoters to fuel
them, and today's action demonstrates that we will hold accountable not just
the principal architects of these massive schemes, but also promoters who
spread their fraud by unlawfully soliciting victims.”
The SEC
claims that instead of investing funds as promised, NovaTech used new investor
money to pay earlier investors and promoter commissions, while the Petions
allegedly siphoned millions for personal use. The scheme reportedly targeted
the Haitian-American community and operated from 2019 until its collapse in May
2023.
Six
NovaTech promoters were also charged for their roles in recruiting investors,
even after becoming aware of regulatory actions against the company. One
promoter, Martin Zizi, has agreed to pay a $100,000 civil penalty to settle the
charges partially.
This marks
another multimillion-dollar action by the SEC against a cryptocurrency company
recently. Two weeks ago, in collaboration with the Department of Justice (DoJ),
the Commission charged Nader Al-Naji, the founder of the cryptocurrency social
media platform BitClout, with wire fraud and the sale of unregistered
securities totaling $257 million.
OTC Link Fined for AML
Violations
In a
separate action, the SEC announced charges against OTC Link LLC for failing to
file Suspicious Activity Reports (SARs) over a three-year period. OTC Link,
which operates three alternative trading system platforms for over-the-counter
securities, allegedly lacked proper AML procedures to monitor transactions for
suspicious activity.
“Broker-dealers
are critical gatekeepers to the securities markets and must diligently monitor
for suspicious transactions,” said Tejal D. Shah, Associate Regional
Director of the SEC's New York Regional Office. “When firms like OTC Link
fail to file SARs, they deprive regulators and law enforcement of important
information about suspicious activity.”
OTC Link
agreed to pay a $1.19 million penalty and engage a compliance consultant to
review its AML policies without admitting or denying the SEC's findings.
Just last
week, the investment banking firm Piper Sandler agreed to pay $16 million in
civil penalties to resolve inquiries by U.S. regulators concerning its
record-keeping practices. Announced on Tuesday, this settlement represents a
further step in the ongoing enforcement of compliance with communication
standards on Wall Street.
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
Retail Trading & Prop Firms in 2025: Five Defining Trends - And One Prediction for 2026
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
