Economics

The SEC is charging the founders and promoters of NovaTech for operating a financial pyramid scheme that raised a total of $650 million in cryptocurrencies. 

According to the SEC, the Founders promised that NovaTech would invest investors' money in cryptocurrencies and currency markets. In reality, most of these funds were used to pay profits to earlier investors, pay commissions to promoters, and for the founders' personal expenses.

NovaTech collapsed in May 2023, leaving more than 200,000 investors around the world with no way to recover their funds.

Another cautionary tale of the dangers of financial schemes in the crypto world. It's important to always do thorough research and due diligence before investing your hard-earned money. Let's learn from these mistakes and protect our investments. 

In a lot of cases research isn't enough. I think the safest way to protect our assets is to diversify them in few well known platforms to be sure that in an extreme case, not all savings will be lost.