NY AG Goes After NovaTech Ponzi Founders for $1.37B
Another crypto "yield" scheme comes back to bite its operators. New York's AG is pushing for $1.37 billion from NovaTech's founders after an August 2025 default judgment, plus nearly $6 million already settled with four promoters. Serves as a reminder: if promoters are getting paid to bring you in, that's usually the real business model.
A coin runs on its own independent blockchain and is used to pay network fees, like the native asset of a layer-1 network. A token is built on top of someone else's blockchain using a smart contract, meaning its existence depends on that underlying network staying secure and functional. This matters for risk because a token carries two layers of risk — its own project plus the host blockchain — while a coin only carries one. Before trading anything, check whether it's a coin or token, and understand what it actually depends on to keep working.
Unlimited Token Approvals: Convenience With a Catch
When you swap or stake a token, you often approve a contract to spend it on your behalf. Many wallets default to "unlimited approval," letting that contract move any amount of that token, forever, without asking again. That's convenient, but if the contract is ever exploited or malicious, your entire token balance is exposed, not just the amount you intended to trade. A safer habit is approving only what you need and periodically reviewing and revoking old approvals you no longer use.