NovaTech FX, Regulation
The state of Maryland has hit NovaTech FX and its co-founders, Cynthia Petion and Eddy Petion, with a massive $110 million civil penalty.
Maryland Final Order
On July 9, 2025, Maryland’s Securities Commissioner issued a Final Order against NovaTech FX and the Petions after they failed to respond to an earlier Order to Show Cause.
The order found that NovaTech FX operated as an illegal pyramid scheme that defrauded hundreds of thousands of investors worldwide — including around 3,000 Maryland residents who lost approximately $110 million.
Key Violations Found by Maryland
Maryland’s investigation revealed multiple serious breaches of the Maryland Securities Act, including:
- Offering and selling unregistered securities
- Making false or misleading statements to investors
- Operating as unregistered broker-dealers and investment advisers
- Engaging in fraudulent and deceptive practices
As a result, the Petions and their companies were ordered to pay a $110 million civil monetary penalty.
NovaTech FX Background
NovaTech FX was a multi-level marketing (MLM) cryptocurrency platform that promised high returns. It collapsed in February 2023.
The company, along with related entities (NovaTech Ltd., NovaTech Advisors LLC, NovaPay LLC, and NovaTrading OU), aggressively recruited investors through an MLM model across the United States and internationally.
Long List of Regulatory Actions
NovaTech FX and the Petions have faced action from multiple regulators:
- December 2022 — Ontario Securities Commission issued a fraud warning
- November 2023 — Washington state charged the Petions with fraud
- June 2024 — New York Attorney General sued NovaTech FX and the Petions
- August 2024 — U.S. SEC filed a major lawsuit against NovaTech, the Petions, and several promoters
- December 2024 — Ontario Capital Markets Tribunal ordered $2.5 million in penalties
During the collapse, Cynthia and Eddy Petion fled the United States for Panama.
