INTEL: New York seeks $1.37 billion from NovaTech founders in crypto fraud case
New York Attorney General Letitia James is seeking nearly $1.37 billion from NovaTech founders Cynthia and Eddy Petion after investigators identified more than $1.16 billion in cryptocurrency deposits to the alleged investment fraud scheme.
A court filing submitted on October 22, 2026, seeks approximately $1.13 billion in disgorgement and another $232.5 million in interest. The request follows an August 2025 default judgment against the founders, who fled the United States.
The new filing provides detailed findings about how NovaTech handled investor funds, including substantial withdrawals to wallets connected to the couple.
Investigators trace $134.5 million to founders’ crypto wallets
According to the New York Attorney General’s investigation, investors deposited approximately $1.16 billion in cryptocurrency into NovaTech wallets between August 2019 and May 2023.
At least $134.5 million was transferred to cryptocurrency wallets linked to Cynthia and Eddy Petion. Investigators identified Cynthia Petion as the person who authorized the transfers.
Despite advertising consistent trading profits, NovaTech deposited only $25.99 million into its trading platform between August 2019 and April 2023.
The company’s traders lost approximately $18.19 million of that amount.
Prosecutors said the returns and recruitment bonuses advertised to customers were funded through deposits from other investors rather than actual trading profits.
More than 11,000 New Yorkers were affected
The case originated in June 2024 when Attorney General James sued NovaTech and AWS Mining over alleged illegal pyramid schemes.
The companies targeted immigrant and religious communities, particularly Haitian communities, using prayer groups, social media and WhatsApp messages promising high investment returns.
More than 11,000 New Yorkers invested in the schemes and lost tens of millions of dollars, according to the attorney general’s office.
NovaTech collapsed in 2023, leaving tens of thousands of investors unable to withdraw their cryptocurrency.
Four promoters agree to pay nearly $6 million
Separately, New York has secured settlements totaling approximately $5.98 million from four promoters involved in the schemes.
Martin Zizi, Frantz Ciceron, James Corbett and Ricardo Roy Sr. agreed to payments intended to benefit victims. They have also been permanently banned from participating in the securities, commodities and cryptocurrency industries.
The court previously entered a default judgment against the Petions in August 2025 after they failed to respond to the lawsuit.
The latest $1.37 billion request remains subject to the court’s determination. It is not an amount that authorities have already recovered from the founders.
