Crypto Pyramid Scheme Cost Investors $650 Million, SEC Alleges

A cryptocurrency multi-level marketing fraud raised $650 million worth of digital assets from more than 200,000 investors, the SEC says in an enforcement suit against the scheme’s creators and top promoters.

The Securities and Exchange Commission filed its complaint Monday in the US District Court for the Southern District of Florida. One defendant has consented to a $100,000 civil penalty and disgorgement in an amount that hasn’t yet been determined, according to a document filed the same day.

Cynthia and Eddy Petion used their company, Nova Tech Ltd., to entice US and foreign investors to participate in a crypto trading …