TLDR: New York AG seeks $1.37 billion from NovaTech founders Cynthia and Eddy Petion over alleged crypto fraud. Investors deposited $1.16 billion, but only $25.99 million reached trading, res
New York Attorney General Letitia James has asked a court to order NovaTech’s founders to pay $1.37 billion. The founders, Cynthia and Eddy Petion, previously facedcrypto pyramid scheme charges over an investment operation that collected funds from customers worldwide.
The October 22 filing seeks disgorgement and interest, while four NovaTech promoters have agreed to pay nearly $6 million. More than 11,000 New Yorkers invested in NovaTech and AWS Mining, according to the attorney general’s office.
The court filing seeks $1.1345 billion in disgorgement and $232.47 million in prejudgment interest. Together, those amounts total $1.367 billion, which New York wants the founders and NovaTech entities to pay.
The request follows an August 2025 default judgment after the petition failed to respond to the state’s lawsuit. The court barred their securities, commodities, and crypto activities in New York but deferred its decision on financial relief.
New York AG Seeks $1.37B From NovaTech Founders Over Alleged Crypto Ponzi Scheme
New York AG seeks $1.37 billion from NovaTech founders Cynthia and Eddy Petion: $1.13 billion in disgorgement plus $232.5 million in prejudgment interest. Court filings show $1.16 billion in crypto… pic.twitter.com/XDjGMonCXs
— Wu Blockchain (@WuBlockchain) October 23, 2026
James said the businesses drew investors into fraudulent schemes by promising returns from mining and crypto trading. She accused the operators of robbing investors of their life savings while targeting religious and immigrant communities.
In a separate proceeding, a federal court orderedrepayments in a $31.48 million crypto fraud case last month. For NovaTech, the requested amount still requires a court decision following the state’s October filing.
Between August 2019 and May 2023, investors deposited $1.1605 billion in cryptocurrency into NovaTech wallets tracked by CoinPayments. Court records show only $25.99 million reached a trading platform, where losses totaled $18.19 million.
Prosecutors allege NovaTech promised weekly returns of 2% to 4%, despite having little trading income to support those claims. The company allegedly used deposits from new investors to pay other customers and provide bonuses for recruitment.
Investigators traced at least $134.5 million in transfers to wallets belonging to Cynthia and Eddy Petion. The company recruited through social media, WhatsApp chats, and prayer groups, including Haitian communities in New York.
Federal regulators describedWhatsApp-based crypto investment fraud in another case that resulted in a June judgment. A separate2026 crypto Ponzi prosecution concerned alleged payouts funded by new deposits instead of trading profits.
NovaTech collapsed in 2023, leaving tens of thousands of investors unable to recover their cryptocurrency. New York’s filing describes losses among customers across the United States and abroad.
New York settled claims against Martin Zizi, Frantz Ciceron, Ricardo Roy Sr., and James Corbett over their roles as promoters. The agreements require approximately $5.98 million in payments and permanently bar all four from securities, commodities, and cryptocurrency activities.
Zizi agreed to pay $2.9 million, while Ciceron will pay $2.05 million under the settlements. Corbett will pay $750,000, and Roy’s payment is $275,861, with the funds intended to benefit victims.
The case began with a June 2024 lawsuit against NovaTech, AWS Mining, and several people associated with both operations. AWS Mining collapsed in 2019 after promising monthly returns of 15% to 20%, and the Petions later established NovaTech.
The CFTC has pursuedother alleged crypto and forex Ponzi schemes involving recruitment bonuses. In New York, the court must still decide the $1.37 billion request against the Petions and NovaTech entities.
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