New York Attorney General Letitia James has asked a court to order NovaTech founders Cynthia and Eddy Petion, along with related companies, to pay $1.37 billion in connection with what the state describes as a Ponzi scheme tied to the failed crypto and forex platform.
The filing seeks roughly $1.13 billion to repay investors and another $232.5 million in interest. It follows an August 2025 default liability finding against the Petions and the companies after they did not respond to the lawsuit.
Restitution request follows default judgment
The attorney general’s latest motion asks the court to convert that earlier liability finding into a large financial judgment. In addition to the NovaTech-related amount, the motion also seeks about $6.15 million, including interest, tied to AWS Mining, an earlier crypto mining venture that collapsed in 2019.
James sued NovaTech, AWS Mining, and related companies in June 2024. According to the state’s case, both operations caused substantial losses for investors, including thousands of residents in New York.
State alleges broad investor losses
The complaint says more than 11,000 New Yorkers lost tens of millions of dollars through NovaTech and AWS Mining. NovaTech itself collapsed in 2023, leaving tens of thousands of people unable to withdraw their funds.
State prosecutors allege that investors put about $1.16 billion into NovaTech crypto wallets between August 2019 and May 2023. The filing says only about $26 million of that total was deposited with the platform’s trading provider, B2Broker.
Promoters accused of targeting immigrant communities
The attorney general’s complaint alleged that NovaTech promoters focused on Haitian and other immigrant communities while marketing the scheme. According to the state, recruitment took place through prayer groups, social media, and WhatsApp messages.
The lawsuit also alleged that investors were promised high returns and bonuses for bringing in additional participants, a structure the state says helped drive further deposits into the platform.
Separate settlements with recruiters
While the founders and associated companies were found liable by default, four people accused of recruiting investors into NovaTech separately agreed to settlements totaling nearly $6 million. Those funds are intended to benefit victims.
The court has not yet been reported to have ruled on the attorney general’s current request for the $1.37 billion judgment. The next confirmed step is the court’s consideration of the motion seeking restitution, interest, and the additional AWS Mining-related amount.
Source: cointelegraph.com