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SEC Charges NovaTech Promoters in Alleged $650M Crypto Ponzi Scheme

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The U.S. Securities and Exchange Commission (SEC) has filed charges against NovaTech Ltd. and its principals, Cynthia and Eddy Petion, for allegedly organizing a crypto fraud that defrauded over 200,000 investors worldwide, including many within the Haitian-American community.

The SEC’s complaint details that NovaTech, under the leadership of the Petions, was promoted as a multi-level marketing (MLM) and crypto asset investment program.

$650 Million Crypto Ponzi Scheme

According to an August 12 press release, the SEC accuses the Petions of running a fraudulent scheme that raised more than $650 million in crypto assets between 2019 and 2023.

Investors were led to believe that their funds would be safely invested in cryptocurrency and foreign exchange markets, with Cynthia Petion reassuring them that their capital would yield profits from day one.

However, instead of investing most of the funds as promised, the SEC claims that NovaTech used investor money to pay existing investors and cover commissions for promoters, classic characteristics of a Ponzi scheme.

A huge portion of the funds was also allegedly siphoned off by the Petions for personal use. As the scheme began to unravel, most investors found themselves unable to withdraw their funds, resulting in significant financial losses.

Eric Werner, Director of the SEC’s Fort Worth Regional Office, stated that NovaTech and the Petions caused significant losses to tens of thousands of victims globally. He emphasized that large MLM schemes rely on promoters to thrive and asserted that the SEC will hold accountable not only the primary architects of such schemes but also the promoters who unlawfully solicit victims.

SEC Charges Six NovaTech Promoters

The SEC has also charged six top NovaTech promoters—Martin Zizi, Dapilinu Dunbar, James Corbett, Corrie Sampson, John Garofano, and Marsha Hadley. They are accused of recruiting a broad network of investors while downplaying critical red flags regarding the company’s operations.

These red flags included regulatory actions taken against NovaTech by U.S. and Canadian authorities, which the promoters allegedly ignored while continuing to solicit new investments.

The SEC’s complaint seeks permanent injunctive relief, the disgorgement of ill-gotten gains, and civil penalties against all defendants. Meanwhile, Zizi has agreed to a partial settlement of the SEC’s charges but hasn’t admitted or denied the allegations.

Zizi consented to a $100,000 civil penalty and agreed to be permanently enjoined from future violations of the charged provisions. Pending court approval, the final determination of other monetary remedies against Zizi will be decided at a later date.

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Cardano Price Analysis: Can ADA Crash Below $0.7 This Week?

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Cardano’s price has experienced a massive drop recently following the Ethereum crash. However, things are still looking more positive for ADA, compared to ETH.

By Edris Derakhshi (TradingRage)

The USDT Paired Chart

Against USDT, the cryptocurrency has been consolidating between $1.2 and $0.8 over the past few months, forming a large descending channel pattern.

However, it broke down to the downside during the crypto market crash led by Ethereum, and ADA’s price briefly traded below its 200-day moving average, located around the $0.6 mark, before rebounding higher.

Currently, the price is trying to hold above the $0.8 support level, which would be vital if a bullish shift is bound to occur soon.

ada_price_chart_0502251
Source: TradingView

The BTC Paired Chart

The ADA/BTC chart shows a somewhat similar picture to that of the USDT-paired one. However, ADA is weaker than BTC.

The market has lost a key support level at 900 SAT and is now testing the 200-day moving average, which is located around the 750 SAT level.

In case of a breakdown, a deeper drop toward the 500 SAT area would be imminent. However, as the RSI is showing a clear oversold signal, a pullback toward the 900 SAT level looks more likely at the moment.

ada_price_chart_0502252
Source: TradingView
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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.

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Cryptocurrency

BitMEX Launches 20 New Altcoin Options Featuring LTC, SUI, LINK, and More

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[PRESS RELEASE – Mahe, Seychelles, February 5th, 2025]

BitMEX, a longstanding cryptocurrency derivatives exchange, has introduced 20 new options contracts, expanding its offerings to include a wider range of altcoins. Traders now have access to options contracts for Litecoin (LTC), Sui (SUI), Chainlink (LINK), Aave (AAVE), and additional assets, providing more instruments for risk management and market engagement.

BitMEX Options provides traders with access to robust market depth and minimal price fluctuations through an Orderbook and a Request-for-Quote (RFQ) interface. The platform supports both single-leg and multi-leg options trading with competitively low minimum sizes. Additionally, the Strategies Dashboard streamlines the execution of advanced options strategies, offering a more efficient trading experience.

Stephan Lutz, CEO of BitMEX said, “With the markets showing more volatility than ever, traders have an opportunity to push their strategies further, and we want to ensure they have every advantage. With this expansion, BitMEX is delivering what traders demand – a wider range of assets whilst empowering them with cutting-edge features that make executing sophisticated strategies effortless. With the addition of 20 new altcoin pairs, it reinforces our commitment to making BitMEX the go-to platform for options trading.”

Options traders can now access options pairs for BTC, ETH, AAVE, ADA, APT, AVAX, BCH, DOGE, FIL, ICP, LDO, LINK, LTC, MMPEPE, MMSHIB, MNT, OP, ORDI, SOL, SUI, TON, TRX, UNI, WLD, and XRP – totalling 26 pairs available for trading on BitMEX Options.

Users can sign up for BitMEX and explore trading options at https://www.bitmex.com/app/options.

About BitMEX

BitMEX is the OG crypto derivatives exchange, providing professional crypto traders with a platform that caters to their needs through low latency, deep crypto native liquidity, and unmatched reliability.

Since its founding, no cryptocurrency has been lost through intrusion or hacking, allowing BitMEX users to trade safely in the knowledge that their funds are secure.

BitMEX was also one of the first exchanges to publish their on-chain Proof of Reserves and Proof of Liabilities data. The exchange continues to publish this data twice a week – providing assurance that they safely store and segregate the funds they are entrusted with.

For more information on BitMEX, users can visit the BitMEX Blog or www.bitmex.com, and follow Telegram, Twitter, Discord, and its online communities.

For further inquiries, users can contact press@bitmex.com.

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Ethereum Price Analysis: ETH Plunges 10% Weekly, What’s the Next Target?

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Ethereum’s price is yet to recover from the drop it has been experiencing lately. Therefore, more downside could be expected in the coming weeks.

Technical Analysis

By Edris Derakhshi (TradingRage)

The Daily Chart

On the daily chart, the price has been making lower highs and lows since getting rejected from the resistance at $4,000. Several support levels have been lost in the last few months, especially the 200-day moving average, located around the $3,000 mark.

While the price has already dropped to the $2,200 support and rebounded, there is still the chance for the market to decline lower as long as the cryptocurrency remains below the 200-day moving average.

eth_price_chart_0205251
Source: TradingView

The 4-Hour Chart

Looking at the 4-hour timeframe, the price has gradually declined inside a large falling wedge pattern. While the market broke the pattern to the downside on Monday, it recovered, reclaiming the $2,800 level. Yet, the RSI still shows values below 50%, indicating that the momentum is still bearish.

Therefore, if the price does not break back above the $3,000 level soon, a deeper correction or a longer consolidation could be expected in the coming weeks.

eth_price_chart_0205252
Source: TradingView

Sentiment Analysis

By Edris Derakhshi (TradingRage)

Ethereum Open Interest

As Ethereum’s price is in a steep downtrend, market participants wonder where the price will finally find support. Analyzing the futures market sentiment could provide helpful insights into this situation.

This chart presents the Ethereum funding rates metric, which measures whether the buyers or the sellers are executing their orders aggressively (using market orders) on aggregate. Favourable funding rates indicate bullish sentiment, while negative values show bearish sentiment.

As the chart suggests, the funding rates have dropped significantly following the recent crash. Judging by its current values, it is safe to say that the futures market is no longer overheated. However, without sufficient demand in the spot market, the market will not be able to recover any time soon.

eth_funding_rates_chart_0205241
Source: CryptoQuant
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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.

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