New York’s October 22, 2026 court filing seeks $1.367 billion from NovaTech and founders Cynthia and Eddy Petion. Records obtained from CoinPayments and B2Broker show that only 2.24% of docum
New York’s $1.37 billion monetary claim against NovaTech’s founders rests on an accounting investigation that exposes two problems: almost none of the cryptocurrency collected from investors reached the advertised trading operation, and authorities still lack the information needed to identify many of the people who lost money.
An October 22, 2026 sworn affirmation details how the New York Attorney General’s Office reconstructed NovaTech’s finances using records obtained from cryptocurrency payment processor CoinPayments and trading infrastructure provider B2Broker.
The filing, submitted in New York County Supreme Court under Index No. 451633/2024, seeks monetary relief against Cynthia and Eddy Petion and their associated NovaTech entities.
It follows an August 4, 2025 default judgment that established liability and imposed industry restrictions. The requested monetary award remains subject to the court’s determination.
NovaTech attracted investors between 2019 and 2023 by advertising weekly trading profits of approximately 2% to 4%, alongside recruitment commissions.
The state’s evidence shows a substantial mismatch between those representations and actual trading activity.
In paragraph 24 of the October filing, Senior Enforcement Counsel Tanya Trakht cites records obtained directly from B2Broker. They show that NovaTech transferred $25,994,603 to its trading platform, where $18,189,417 was lost.
CoinPayments separately supplied NovaTech’s transaction history, which investigators converted into spreadsheets for accounting analysis.
The records showed $1,160,544,294 in investor cryptocurrency deposits between August 15, 2019, and May 23, 2023.
That places the documented trading allocation at approximately 2.24% of deposits, while the trading operation lost about 70% of the capital allocated to it.
The evidence provides a documented basis for the state’s allegation that NovaTech’s advertised investment profits were not supported by genuine trading performance.
The requested award is based on documented investor deposits, with an allowance for funds transferred to B2Broker.
It is not a calculation of cryptocurrency currently held by the founders.
Court Filing Analysis How the $1.367 Billion Claim Was Calculated New York Supreme Court, NYSCEF Document 134, paragraphs 42–46. Investor cryptocurrency deposits $1,160,544,294 Less: amount allocated to B2Broker trading − $25,994,603 Requested disgorgement $1,134,549,691 Plus: prejudgment interest + $232,473,894 TOTAL MONETARY RELIEF REQUESTED $1,367,023,585 The amount is requested in the state’s motion. It is not a confirmed recovery or money already distributed to investors.The filing’s methodology contains an important decision.
Investigators identified approximately $1.149 billion in withdrawals from NovaTech’s CoinPayments wallet. Some went to investors and promoters, including individuals who received substantial recruitment commissions.
The Attorney General argues that these payments should not reduce the disgorgement calculation because they were funded by fraudulently obtained investor deposits rather than legitimate trading profits.
The state instead deducted the entire amount transferred to B2Broker.
The filing also identifies $68.64 million in CoinPayments deposits that investigators could not conclusively attribute to investors. Those transactions were excluded from the requested calculation.
The exclusion limits the amount claimed, although the court must still determine the appropriate monetary relief.
The most consequential limitation in the state’s investigation appears in paragraphs 34 and 38 of the sworn affirmation.
CoinPayments supplied transaction histories, but many NovaTech accounts were identified only by usernames.
Investigators said those identifiers could not reliably be connected to real individuals without accounting records the defendants had been ordered to produce.
Withdrawal records presented a similar obstacle. They contained destination cryptocurrency addresses but generally did not identify the people controlling those wallets.
Authorities could therefore reconstruct substantial aggregate flows without establishing a complete investor-by-investor account of deposits and withdrawals.
That gap matters for any eventual compensation process, which would require reliable information about eligible claimants and their net losses.
The filing states that the defendants failed to provide the ordered investor records and accounting following the August 2025 judgment.
It identifies another unresolved gap involving QuickiPay, a payment processor NovaTech explored using in 2022. Investigators said they could not locate and subpoena the provider, leaving additional transaction information unavailable.
The missing records limit the state’s ability to establish precisely who received funds and how much individual investors lost.
Paragraph 37 of the affirmation identifies transfers associated with NovaTech founders Cynthia and Eddy Petion.”
According to the state’s accounting, Cynthia Petion authorized at least $134,518,775 in cryptocurrency withdrawals from NovaTech’s CoinPayments account to wallets belonging to herself and Eddy Petion.
The amount represents approximately 11.6% of documented investor deposits.
Those historical transfers do not establish that equivalent assets remain available for seizure. The filing does not provide a complete inventory of recoverable property.
Authorities would still need to establish current ownership or control and obtain access to any assets identified through enforcement proceedings.
The founders’ reported departure from the United States could further complicate collection.
The monetary application coincides with settlements involving four former NovaTech and AWS Mining promoters.
According to the New York Attorney General’s October 22 announcement, the agreements establish the following payment obligations:
All four accepted permanent restrictions on participating in the securities, commodities and cryptocurrency industries.
The settlements are intended to benefit victims. However, the announcement does not specify how much has already been collected, whether distributions have begun or how claimants will be selected.
These agreements are separate from the monetary application against the Petions.
The case is also distinct from the SEC’s federal action filed in August 2024, which alleges securities fraud involving NovaTech and several promoters.
The latest New York announcement does not identify a court-appointed claims administrator, announce an open restitution portal or specify a payment date.
Investors should be cautious of unsolicited recovery offers claiming that funds can be released after payment of a processing fee, tax or wallet-verification charge.
Requests for seed phrases, private keys or additional cryptocurrency transfers are serious warning signs.
Any purported recovery program should be independently checked against official court documents or regulator announcements before investors provide information or transfer assets.
The August 2025 default judgment established liability against the relevant defendants. The October 2026 application seeks to quantify the monetary consequences.
The state’s accounting now documents investor deposits, limited trading activity and substantial transfers associated with the founders.
Its unresolved challenge is converting that evidence into enforceable collections and a reliable record of eligible victims.
The next meaningful development will be the court’s monetary determination, followed by evidence of actual collections and an officially verified process for compensating investors.
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