NovaTech FX Collapse? Trading Accounts Frozen, More Warnings

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NovaTech FX may be nearing its end. They sent out a letter to investors on February 5th stating that withdrawals have been disabled.

And this comes after multiple regulatory warnings from the US, Russia, and Canada, including Ontario, Saskatchewan, Alberta, and British Columbia.

The letter from Novatech (shown further below) puts lipstick on the situation, but if anything screams Ponzi Scheme, it's when withdrawals are stopped.

So, did Novatech FX collapse?

Please note, I am not an affiliate for Novatech FX. This article has been researched with information and/or testimonials that are available online in the public domain. Any recommendations and/or conclusions are strictly opinions and may not to apply to, or agree with, all persons or situations. See full disclaimer for more info

Why Did NovaTech FX Freeze Trading Accounts?

Well, like all Ponzi Schemes, withdrawals inevitably exceeded new investments, and it's not hard to suspect that's what's happening here. 

It seems they have continued to make bonus payments, but that makes sense. Bonus payments are to keep new people coming in. They are a recruitment tool.

But as far as getting your investment out, that's not an option right now.

In my Novatech FX Review, I've been very careful not to make accusations, but this doesn't look good. I'm not much of a betting person (which is why I'm not invested with Novatech FX), but if I were, I'd say the pyramid has imploded. 

I'd also say that I don't think people will get their money. But that's only my opinion.

And if true, it's unsurprising because the claimed 300% or higher annual returns are ridiculous. It suggests that the US government could invest a meager billion dollars (meager for the US Government, not for us), and in seven short years, their earnings (not including their balance) would pay off the US National Debt (shown below)…

In other words, one of the biggest challenges faced by the US, and by extension, the world… Novatech FX claims to have solved. Those are not their exact words, but if you follow their claims to their inevitable conclusions… that's kind of what they are saying. 

I have tremendous empathy for many who have invested in Novatech. Some understand the risks, but many were deceived and taken advantage of

In many cases, those who understand the numbers and the risks have bent over backward to claim that the various red flags are nothingburgers. They've done everything they can to explain away the discrepancies and put the blame on regulated banks, the government, naysayers, and whoever else they can to persuade people that NovaTech FX is legit. 

To convince them that a 300% plus return seems outlandish only because the establishment is ripping them off or suppressing them.  

And many are invested based on their personal faith and their real need for Novatech FX to be real.

But that doesn't change the fact that these numbers don't make sense. Faith can be powerful, but I'm not sure it's powerful enough to bend the fundamentals of finance in a way that history has never seen.

And if it is, I don't see it coming in the form of a shady (for lack of a better term) trading platform that doesn't report its trades, has a known scammer's address, and can't figure out its payment processing system.

I'm not saying it's not true. I'm just saying it doesn't look to be true.

So, if this is their exit strategy, it buys them 60 days to put as much distance as possible between them and their victims and fend off as many complaints as possible.

There is also evidence that Novatech FX CEO and co-founder Cynthia Petion and her husband, Eddy Petion, have also sold their home in Florida. Have they fled the US?

NovaTech FX is suggesting investors cancel their pending withdrawal requests. Many of these go back as far as early December 2022. And under the circumstances, it'll likely to get worse because new investment is more than likely to drop to zero, if not already, soon.

So the longer this goes on, the more likely it is that investors won't see their money.  

Strangely, this follows Cynthia's recent appearance on a corporate webinar, where she reassured everyone that there was nothing wrong. She blamed the withdrawal issues on payment processor problems.

If I had to guess, though, I would say that their payment processing system would have no problem accepting money. I haven't tried, but I expect is a one-way-only issue.

I'm not qualified to give investment advice, but this doesn't look good.

And I hope it doesn't sound like I'm making light of the situation. If you have invested money with NovaTech FX with the potential to lose it all, I really hope I'm wrong about all of this.

As time goes on though, I feel like what's going on here is becoming more apparent. Yes… I'm tippy-toeing around the issue. I'm trying to be as fair and unbiased as I can.

But there's an elephant in the room here, which is this…

It's highly likely that millions, if not something approaching a billion dollars, is being stolen from investors.  

In addition to the many red flags I've written about already, more are accumulating.

First, here's the letter from Novatech Admin announcing a temporary freeze in trading account withdrawals until April 1st, 2023…



Latest Update and Memo 2.5

Announcement Date: 2/5/2023 10:39:55 AM

Version: 1.0

Dear Novatech Member,

Since June of 2019 our focus at NovaTech has been to stimulate financial awareness, to a culture unaware of the amazing possibilities in the crypto and forex industry. By the grace of God we have been tremendously successful at fulfilling our mission. We created NovaTech's structure with complete freedom in mind. We have given our customers absolute control of their journey with us for the last four years, and because of that we have become a household name in our space. Our drive to continue our mission for years and possibly decades to come is not about financial gain for us. There are unlimited ways we can make money without the level of stress, scrutiny, and responsibility that comes with our business. The driving force behind what we continue to do comes from the countless heartfelt testimonies of our members. 

During the last quarter of 2022 we experienced a great deal of pressure with the ever changing landscape of our industry. As you may already know we had to close our doors with a heavy heart to some of our most loyal and loving customers in NovaTech due to regulatory changes in specific regions. We know that most of you may not understand the impact this had on our business, and we as a company should have done a better job at communicating this with you. While we cannot go back in time to correct what has not been done, we will commit moving forward to giving all of our NovaTech customers the proper communication so that we all have realistic expectations. We want to assure you that our business model is not only strong, but completely sustainable into the unforeseeable future. 

As we move forward in this new and developing 2023 season our experiences in the last several months of challenges has brought to light some weaknesses in the way we operate that we felt were strengths at one point as a new and growing company. NovaTech has always produced, performed, and paid every customer since its inception in June of 2019, regardless of the adversity we may have faced in every market condition in the last 4 years. While we don't compare ourselves to any other of the many platforms in our space, we know what we've done and what we continue to do is unprecedented. To protect what we've built and to continue to be the crypto trading asset management company we are, it is imperative that we create parameters within our business model that protects our customers from making erratic decisions that can affect the integrity of our program. NovaTech is unique in the fact that we've given our members complete control of how they move about with their crypto funds. But, in light of the forced closures of accounts from some of our beloved members, and the massive amounts of withdrawals we had to initiate, this created a tremendous amount of fear, uncertainty, and doubt that our customers have never had to experience. Because in the past we chose not to communicate what does not pertain to the functionality or success our business, we left some of you to fall victim to outside rhetoric, which influenced so many of you in making the decision to withdraw from your trading accounts to simply test if we are still paying. Please know that we continue to actively pay and release cashouts daily, despite delays. 

As a result, we have decided to place a temporary freeze in trading account withdrawals for a period of 60 days. This includes existing cashout requests from Trading. This will allow us to immediately start the process of getting back to a regularly scheduled bonus account withdrawals. We understand this may not fair well with a small percentage of you, but we are here to protect our future as a whole, and we refuse to compromise our crypto asset management and trading strategies for the few that may not understand. If you have a trading account withdrawal in process, you have a choice to leave it in the queue, and wait until April 1st 2023 when we will resume trading account withdrawals, or you can cancel your withdrawals and allow your account to continue to earn, while withdrawing profits weekly. The goal with NovaTech is to create sustainable passive profits of which we have done an amazing job thus far, and will continue with God's grace. Let's all protect our house by eliminating the noise on the outside by staying plugged in and in communication on the inside. Every member of NovaTech should have an up-line who's connected to one of our many Senior Directors and Ambassadors in NovaTech. We love every last one of you, we appreciate you, and we will continue business as usual.

NovaTech Admin

Now, let's look at the growing list of red flags…

Securities Fraud Warning from Alberta Canada

Novatech FX has managed to earn itself a second securities fraud warning from Canadian regulators, this time from the Alberta Securities Commission. For an allegedly legitimate company, it appears they can't stay out of trouble.

Being added to Alberta's Investment Caution List is similar to getting a securities fraud warning in other states, provinces, etc.

It's another item on the growing list of warnings that continue to increase the probability that Novatech FX is what we suspect it to be; a Ponzi scheme.

This came a day after British Columbia issued a related warning. As I've written in a previous Novatech FX article, California and the Central Bank of Russia have also warned about these guys.

The fact that NovaTech FX has been on the receiving end of multiple regulatory warnings and investigations is, as mentioned earlier, not good and probably a good sign to steer clear.

Especially now that they've closed trading account withdrawals.

Cease Trading Order from Ontario Canada

The cease trading order from Ontario was issued on February 16th and comes in light of the firm's recent Ponzi collapse and ongoing investigation into securities fraud.

The OSC's (Ontario Securities Commission) order mentions NovaTech's recruitment commissions, which are still being paid out despite the collapse, and the potential for further fraudulent activity. 

The OSC is doing its best to let people know and to encourage NovaTech's victims in Ontario to come forward and tell their stories. Any information they may have will help in an investigation. Those who want to contact the Ontario Securities Commission can find their contact information on the OSC website.

The pressure on NovaTech is increasing. They've been the subject of regulatory investigations in both Canada and the United States, and it's possible that more actions against the company and its founders, Cynthia and Eddy Petion, are just around the corner.   

Of course, we don't know that for certain, but the possibility is relatively high based on what we currently know. At least high enough to be hesitant to invest money with them (if what we already know isn't enough).

NovaTech FX hasn't commented on the cease trade order or the ongoing investigations, and they probably won't. But in my opinion, it highlights the importance of regulatory oversight in the trading industry. Especially when it comes to platforms that offer returns way beyond what any credible platform or broker can provide. 

If you're an investor or thinking of investing, it's critical to do your research and only work with credible firms with a proven track record and comply with regulations.

Securities Fraud Notice from Saskatchewan Canada

NovaTech FX continues to get pummeled, this time from Saskatchewan, Canada. Like BC, Alberta, and Ontario, they received yet another Investor Alert from Saskatchewan's Financial and Consumer Affairs Authority (FCAA).

In the December 13th alert, the FCAA identifies NovaTech FX as “an opportunity to invest and trade stocks, forex, and cryptocurrency,” which, according to the alert, constitutes a securities offering, which they are not registered to offer.

So here's another warning about NovaTech FX. NovaTech FX is allegedly offering investors refunds instead of registering with financial regulators and operating legally.

Having said that, I haven't found any evidence of refunds.

If refunds are occurring and you're aware of them, please let me know in the comments below so I can correct this.

It's also unclear whether these NovaTech FX payments to Canadians are on their trading accounts or from the recruitment compensation plan, if they’re paying at all.  

As mentioned above, it makes sense that they continue to pay their recruiters because they need new money to come in.

But we know from the letter that most people's funds are being withheld.

And, of course, few would know for certain, but it wouldn't be surprising if a federal US investigation into NovaTech FX is underway as well.

In the FCAA's warning, they list several entities that are associated with NovaTech FX, including…

  • NovaTech, LTD
  • Novapay, LLC
  • NovaTech Advisors, LLC
  • NovaTrading OU
  • Cynthia Petion
  • Eddy Petion
  • Ricardo Roy Sr

Rise in Non-Payment Complaints

When a Ponzi scheme approaches collapse, it usually triggers a chain of events that includes made-up withdrawal complications and/or having your money frozen completely.

Of course, the money isn't stuck in your account. It's been stolen. The only thing you see are numbers on a screen that mean nothing.

News gets out, and a surge in withdrawal requests come in.

But the scheme doesn't have the funds to pay anyone, leading to delays, excuses, and outright refusals.

And the complaints begin to pile up.

You can find many complaints on the Facebook Group Novatech Scam – Now What.

Here are some examples below…

No Contact Information on the Novatech FX Website

Added to the increasing list of red flags and concerns is the disappearance of Novatech's contact information.

Missing Contact Information on Novatech FX Website
Source: Novatech FX

So the Novatech FX Saga continues, and my opinion hasn't changed. I don't think this story has a happy ending for most people.

Share your thoughts below. Do you trust Novatech FX?

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4 thoughts on “NovaTech FX Collapse? Trading Accounts Frozen, More Warnings”

  1. just reach out to thecybergoat with your withdrawal challenge on the novatech platform and they’ll help out. Atleast that’s what I did!

  2. Nova Tech I believe is over , they stopped giving money out since December it’s now May 🤦‍♀️ . No address no phone number, the last time the owner spoke was back in March it’s over I try to have hopes but it seems like I need to accept it so I can moved on.
    They did it once why did we think they would done right by the peoples .

  3. I was convinced to invest my life savings of 100 thousand dollars beginning of March, by a friend, Now I can’t get my trading balance back, all bonus monies are pending. I want my money back.