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NY AG seeks $1.37B from NovaTech founders over Ponzi scheme.

  • New York Attorney General Letitia James seeks $1.37 billion from defunct crypto platform NovaTech’s founders over an alleged Ponzi scheme.
  • The court found Cynthia and Eddy Petion and their companies liable by default in August 2025 after they failed to respond to the lawsuit.
  • Four recruiters have separately agreed to pay nearly $6 million in settlements intended to benefit victims.
  • More than 11,000 New Yorkers lost tens of millions of dollars through NovaTech and an earlier crypto mining scheme called AWS Mining.
  • Investors deposited about $1.16 billion into NovaTech’s crypto wallets, but only roughly $26 million was actually sent to the platform’s trading provider.

New York Attorney General Letitia James has asked a court to order the defunct crypto and Forex trading platform NovaTech‘s founders, Cynthia and Eddy Petion, and related companies to pay $1.37 billion over its Ponzi scheme. The AG is seeking the return of approximately $1.13 billion in investor funds plus $232.5 million in interest, according to a Thursday court filing.

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The court found the Petions and the companies liable by default in August 2025 after they failed to respond to the lawsuit. Four people who recruited investors into NovaTech have separately agreed to pay nearly $6 million in settlements intended to benefit victims, according to the AG’s office.

More than 11,000 New Yorkers lost tens of millions of dollars through NovaTech and an earlier crypto mining scheme, AWS Mining. The complaint alleged that promoters targeted Haitian and other immigrant communities through prayer groups, social media and WhatsApp, promising high returns and recruitment bonuses.

Investors deposited about $1.16 billion into NovaTech’s crypto wallets between August 2019 and May 2023. Of that, only about $26 million was deposited with the platform’s trading provider, B2Broker, for trading, according to the attorney general. The motion separately seeks approximately $6.15 million, including interest, over AWS Mining.

AWS Mining collapsed in 2019, while NovaTech collapsed in 2023, leaving tens of thousands of investors unable to withdraw their funds. James sued NovaTech, AWS Mining and other associated companies in June 2024.

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