New York Attorney General Settles Crypto Pyramid Schemes
State officials secure nearly $6 million from four promoters who targeted immigrant communities with fraudulent investments.
Updated on Oct. 22, 2026 in Financial Crime
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New York officials have reached a $5.98 million settlement with four individuals accused of operating illegal cryptocurrency pyramid schemes that ensnared over 11,000 residents. The promoters are now permanently banned from the securities, commodities, and cryptocurrency industries.
Why it matters
The settlement aims to provide financial restitution to victims after state investigators alleged the promoters acted as unregistered brokers while targeting Haitian and other immigrant communities through social media and prayer groups.
The settlement resolves a 2024 lawsuit against NovaTechFx and AWS Mining Pty Ltd. The four promoters, including Martin Zizi and Frantz Ciceron, have agreed to pay their respective portions and face permanent industry debarment.
The players
New York Attorney General
This state office is responsible for prosecuting financial crimes and protecting consumers from fraudulent investment schemes.
Martin Zizi
He is one of the four promoters who agreed to pay $2.9 million as part of the settlement.
Frantz Ciceron
He is a promoter involved in the scheme who agreed to pay $2.05 million to resolve the allegations.
NovaTechFx
This is a cryptocurrency investment entity named in the 2024 state lawsuit as a vehicle for the alleged pyramid scheme.
AWS Mining Pty Ltd.
This company was targeted in the state lawsuit for its alleged role in promoting illegal cryptocurrency investment activity.
The details
Promoters reportedly leveraged trust within community circles, including church groups and WhatsApp messaging, to lure participants into the fraudulent platforms. Authorities successfully identified these operations as unregistered brokerage activity, ultimately leading to the civil settlement announced this month.
Timeline
The state filed the original lawsuit against NovaTechFx and AWS Mining in 2024.
The Attorney General announced the final settlement in October 2026.
Legal Context
This enforcement action follows the established regulatory authority of the Martin Act, which empowers state officials to aggressively pursue entities acting as unregistered brokers. It reflects a broader trend of state authorities increasing oversight to combat the proliferation of fraudulent digital asset schemes.
Residents in affected areas like New York City, Westchester, and Rockland County who invested in these schemes may be eligible for restitution payments as the settlement is processed. Local communities are encouraged to monitor official state guidance regarding the claims process for those targeted by the promoters.
The takeaway
Investors should remain highly cautious of cryptocurrency schemes that rely on private messaging platforms or informal community networks to solicit capital. Always verify the registration status of any broker or investment platform through state regulatory databases before transferring funds.
Further reading
For more on how state authorities track and prosecute illicit investment activities, visit the Financial Crime section.
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