NovaTech FX was founded by Cynthia Petion in 2019 as a Crypto and Forex trading platform that promised MLM benefits to its users.
However, it has since been revealed that NovaTech FX was likely to be a scam and a Ponzi scheme that had been operating securities fraud.
Previously Eveninsight has already discussed the red flags and legitimacy of the platform in the NovaTech FX review post
NovaTech FX Collapsed
The NovaTech FX Ponzi scheme has recently collapsed, and investors have been advised of the situation by the “NovaTech Admin” in a communication sent out on February 5th.
In the statement, it was announced that withdrawals have been temporarily disabled for a period of 60 days, which is a common tactic used by Ponzi schemes in order to hold off complaints to financial regulators for as long as possible.
Previously in December 2022, the company’s CEO, Cynthia Petion, had reassured clients that everything was fine and blamed payment processor issues for the withdrawal problems, but these excuses wore thin over time.
In the statement, the admin said that trading account withdrawals would resume on April 1st, 2023, but this was unlikely to happen, given that new investment was likely to dry up now that withdrawals had been disabled.
NovaTech stated that the temporary freeze on withdrawals was necessary to allow them to “get back to regularly scheduled bonus account withdrawals.”
However, this was a clear sign that the Ponzi scheme had collapsed, as withdrawals were disabled due to a lack of new investments to cover existing withdrawal requests.
NovaTech has previously received fraud warnings from regulatory bodies in Canada, Russia, and the United States, and thousands of people have lost millions as a result of their involvement with NovaTech FX.
However, it has since come to light that NovaTech FX was not a legitimate platform, but rather a Ponzi scheme and securities fraud.
The company promised returns that were too good to be true, and when withdrawals began to exceed new investments, the company was unable to pay its clients and eventually seems to be collapsed.
The collapse of NovaTech FX was not a surprise to many, as there were numerous red flags and warnings from government regulatory bodies, including the Financial Conduct Authority (FCA) in the UK and the Commodity Futures Trading Commission (CFTC) in the US.
Also, the current location of Cynthia and Eddy Petion, the co-founders of NovaTech FX is not known, but previously they were located in Rhode Island.
Investors are advised to be cautious when considering investing in cryptocurrency and forex trading platforms and to thoroughly research the platform before investing.
The NovaTech FX scandal serves as a reminder of the dangers of investment scams and the importance of investing wisely.