NovaTech Scam Alert: Avoid Unregulated Forex & Crypto Fraud

What is NovaTech?

Novatech FX Ltd. (“Novatech”), founded in 2019, was registered in St. Vincent and the Grenadines, a jurisdiction known for its minimal regulations and booming unlicensed brokers. NovaTech, which said it was a leading forex and crypto trading platform, claimed to have its own trading software with deep liquidity. Mostly active from 2020 to 2023, they attracted investors by promising monthly returns of 3% to 5%. Accusing them of a $600 million investment fraud, the SEC filed charges on August 12, 2024, against NovaTech FX, Cynthia and Eddy Petion, and several promoters.

Company details are listed as below:

Broker Name	Novetech FX
Logo
Founded in	2019
Regulations	Unregulated
Registered in	St.Vincent and the Grenadines
Founders	Cynthia Petion (CEO), Eddy Petion (COO)
Products	Cryptos and Forex
Account Type	PAMM Account
Platform	MetaTrader 5
Payment	Cryptocurrency
Customer Support	support@novatechfx.io
WikiFX Scam Exposures	17 Pieces

NovaTech - Unregulated Operation

Despite claims of being a global broker serving clients worldwide, Novatech fails to provide verifiable information about its regulatory compliance to support its operation. Instead, the truth is that NovaTech was born in St.Vincent and the Grenadines, a shady spot with booming unlicensed brokers, and NovaTech is among those scams. NovaTech's absence from the FSA (St.Vincent and the Grenadines) registry suggests it was not registered and, possibly, lacks an entity. Like the FSA search, the FCA website also shows no record of NovaTech. This again confirms the broker operated entirely without regulation.

How Does NovaTech Run Scams?

Built its global investor base primarily online, NovaTech targets investors globally through social media platforms, online webinars, and multi-level marketing recruitment strategies. In reality, it functioned as a Ponzi scheme, where funds from new investors were used to pay earlier investors and commissions to promoters, rather than being used for legitimate trading. They advertised consistent weekly profits, often around 3%, which far exceed typical returns in legitimate trading.

NovaTech's business model mirrors the strategies employed in past investment scams:

Initial Hook

Typically, potential investors are introduced to NovaTech through social media, online advertisements, or through friends and family already involved in the scheme. These introductions often highlight testimonials from “successful” investors and showcase luxury lifestyles supposedly attained through NovaTech investments.

Unrealistic Returns

NovaTech lures investors with the promise of consistent monthly returns ranging from 3% to 5%. Since investing involves huge risks, the guarantee of profits is not feasible at all. Thus, Novatech's promise of high profits is purely a tactic to quickly defraund investors. This fraud is so eager to take investors' hard-earned money.

Investment Packages

NovaTech offers various investment packages with different minimum investment requirements. Their forex division typically requires a minimum investment of several hundred dollars, while their cryptocurrency packages may start at higher amounts. Investors are promised weekly or monthly returns credited to their online accounts within the NovaTech platform.

Recruitment Incentive

To fuel continued growth, NovaTech offers commission structures for members who bring in new investors. This multi-tiered referral system creates financial incentives for participants to recruit others, expanding the scheme's reach and bringing in fresh capital.

Novetech FX - Tracking its Illegeal Records

Established in 2019, NovaTech FX, an unregulated cryptocurrency and forex trading platform, primarily targeted investors in Royal Palm Beach, Florida.

Around September 2019, Cynthia and Eddie Petion, the founders of NovaTech, started to lure investors into purchasing unregistered PAMM accounts.

On February 5, 2023, Novatech announced a 60-day temporary freeze on PAMM account withdrawals without any explanation.

On May 22, 2023, NovaTech FX abruptly collapsed, effectively shutting down operations and leaving investors stranded, unable to withdraw their funds.

On October 25th, 2023, the NovaTechFX team announced on October 25th, 2023, that their “new and only official” website for withdrawals was now https://novatechfxuk.com/home/. This came after citing “unresolvable security loopholes” at their previous address. However, a condition for withdrawal required investors to make a suspicious 30% deposit of their total account funds.

On August 12, 2024, the SEC took action against NovaTech FX, its founders Cynthia and Eddie Petion, and some of their promoters on August 12, 2024. The SEC's complaint alleges that these individuals orchestrated a fraudulent scheme that defrauded over 200,000 investors out of more than $600 million.

WikiFX: Up to 17 NovaTech Scam Exposure

As typical with such operations, initial small withdrawals may be processed smoothly to build confidence. However, investor complaints indicate that larger withdrawal requests often face delays, technical issues, or additional requirements. The longer the scam goes on, the harder it gets to withdraw your money. On WikiFX, there are up to 17 pieces of NovaTecg Scam Exposures:

Victim Country	Exposure Date	Exposure Reason	Withdrawal Rating
	August 12, 2023	has not paid pending withdrawals	⭐
	July 05, 2023	Could withdraw only 15 percent	⭐
	July 04, 2023	I can't withdraw my investment	⭐
	June 18, 2023	No payments, no withdrawals FRAUD	⭐
	June 18, 2023	I can't withdraw at Novatech	⭐
	June 16, 2023	I can't make any withdrawals.	⭐
	June 06, 2023	I got scammed by NovaTech i need to get my money back.	⭐
	June 06, 2023	Fraud for us investors	⭐
	June 06, 2023	NOVATECH burnout	⭐
	June 06, 2023	Blocked withdrawals	⭐
	June 06, 2023	Unable to withdraw	⭐
	June 05, 2023	Do not pay pending withdrawals	⭐
	June 02, 2023	I have not been able to withdraw my capital	⭐
	June 01, 2023	I am unable to withdraw funds	⭐
	May 24, 2023	Inability to withdraw	⭐
	May 24, 2023	My withdrawal was held since last April 3	⭐
	March 06, 2023	theyre delaying our withdrawals just to be stealing our profits	⭐

Case 1: Novatech scam

This investor posted on August 12, 2023, that NovaTech had failed to process his withdrawal request, which remained “pending” since May 2023. More worse, his account funds had been frozen without reason. He was trapped from the moment he made his deposit, as this scam broker had no intention of returning his money at all. The timing aligns with NovaTech FX's sudden collapse on May 22, 2023, when the company abruptly shut down operations, leaving all clients unable to access or withdraw their funds.

Case 2: Blocked withdrawals

This trader posted on May 06, 2023, that he encountered unexpected withdrawal restrictions that were never disclosed before he made his deposit. When he attempted to withdraw his $250, NovaTech imposed a rule limiting withdrawals to just 5% of the account balance. Given that his account only contained $250, this restriction trapped his funds. This was clearly no coincidence - NovaTech deliberately used this deceptive tactic to prevent him from accessing his money. The broker's calculated actions show how they manipulate their own rules to retain control of clients' funds, leaving this trader with virtually no recourse to recover his investment.

Case 3: Unable to withdraw

This victim shared a review on June 6, 2023, coinciding with NovaTech's shutdown of its website and withdrawal system. In his post, he detailed how NovaTech prevented him from withdrawing his funds, and included actual transaction screenshots as evidence of his claims.

All the stories from victims NovaTech scammed show just how huge NovaTech's fraud was. Furthermore, the scam tactics described by victims expose NovaTech's intentional design to retain client funds as a core part of its business model.

What to do to protect yourself from being scammed by NovaTech Again?

One NovaTech ceases operation, and countless similar brokers boom again, continuing to defraud investors. To avoid such scams again, consider these advisable steps:

Check Broker Regulation & Entity

Many licensed brokers pose as legitimate operations to deceive investors, well aware that regulation means a lot for investors. Meanwhile, many offshore brokers operate without any legal entity at all, simply registering a trading brand before proceeding to swindle investors. To protect yourself, always verify broker regulations. When a broker claims to be regulated, take the extra step of entering their license number or regulated entity name directly into the regulatory authority's official website to confirm their status. This simple verification process can save you from huge losses. Remember, over 95% of retail investors will fail in forex trading, while trading with an unregulated forex broker puts you in 100% failure.

Be Aware of Unrelistic Return

Forex scams boom for one reason: forex trading is considered a lucrative opportunity, with many investors dreaming of making a fortune quickly. Typically, these scam operations entice victims with promises of unrealistic returns—often around 5% monthly, far surpassing the returns of legitimate trading.

As retail investors, we need to be immune to these too-good-to-be-true promises. Remember that, in the eyes of scammers, innocent investors are their most valuable “assets”—being cut and grow again in a very short time. Once again, online trading involves risks, no solid and guaranteed returns forever.

Report Scams to Relevant Regulators

Upon suspecting a forex broker of fraudulent activity, such as persistent deposit demands or repeated withdrawal rejections, ceasing to trade with this broker immediately. This action safeguards against further financial loss. Then, a formal report detailing the suspected scam, including all relevant documentation, should be filed with the relevant regulatory authority. This can protect you and deters future victims by exposing the fraud at the same time.