NovaTech FX withdrawal problems, CoinPayments blamed

NovaTech FX investors are having withdrawal troubles.

As per corporate updates shared with investors on Telegram, payment processor CoinPayments is being blamed.

Presently it appears NovaTech FX’s withdrawal issues are localized to tether withdrawals.

We are noticing a growing number of issues arising concerning USDT cash out requests.

We approve and send them, they are shown as SENT in the backoffice, but they are being rejected on the blockchain.

This is most likely due to the payments processor being unable to process – or – the exchange receiving the funds is rejecting the deposit.

We have brought this issue up to CoinPayments, who has attempted to whitelist exchanges in order to avoid further issue, but it still seems to be randomly occurring.

NovaTech FX investors are being told to withdraw using other cryptocurrencies, which still appear to work for now.

CoinPayments markets itself as “the world’s largest provider of cryptocurrency payment services”.

• CoinPayments is operated through UAB Star Ventures, a Lithuanian shell company
• CoinPayment’s marketing material points to the British Virgin Islands
• CoinPayment’s User Agreement cites the London Court of International Arbitration

CoinPayments was co-founded by Sina Mirzaie. As of March 2022 the processor is headed up by Dennis Pederson.

Mirzaie and Pederson are residents of British Columbia, Canada. CoinPayments’ official FaceBook page is managed from Canada, Bulgaria and the Czech Republic.

Despite ties to shady jurisdictions, it appears CoinPayments is primarily based out of and run by individuals in Canada.

NovaTech FX’s withdrawal problems follow a securities fraud warning issued by the British Columbia Securities Commission earlier this month.

BehindMLM can’t confirm NovaTech FX’s withdrawal problems are the result of an ongoing regulatory investigation. If they are, this will not be publicly disclosed until an enforcement action is filed.

What we can confirm is this:

The US makes up the majority of traffic to both NovaTech FX’s and CoinPayments’ websites.

CoinPayments’ User Agreement states;

We reserve the right at all times to monitor, review, retain and/or disclose any information as necessary to satisfy any applicable law, regulation, Sanctions Programs, legal process, or governmental request.

We reserve the right to cancel and/or suspend your Account and/or block transactions or freeze funds immediately and without notice if we determine, in our sole discretion, that your Account is associated with a Prohibited Activity.

NovaTech FX is a Ponzi scheme committing securities fraud. Earlier this year BehindMLM reported on CoinPayments dumping OneCoin within 48 hours.

It would appear, at least in some circumstances, that running a Ponzi scheme is against CoinPayments’ TOS.

Coinciding with withdrawal issues, co-founder and CEO Cynthia Petion announced NovaTech FX has deleted all queued support tickets.

I know this is a drastic measure. It’s not something we would have liked to have done but I do think it’s a necessity in order for us to be able to address issues more quickly.

Cynthia and husband Eddy Petion run NovaTech FX from Florida.

Pending further updates, stay tuned.