New York Seeks $1.37B Judgment in NovaTech Crypto Case

New York Attorney General Letitia James is asking a court to order NovaTech founders Cynthia and Eddy Petion to pay about $1.37 billion over an alleged cryptocurrency investment scheme. The request includes roughly $1.13 billion in disgorgement and $232.5 million in prejudgment interest; the court has not yet ruled on the amount. A default judgment was entered against the founders in August 2025 after they failed to respond, but the latest filing is not a new criminal conviction and does not guarantee that funds can be recovered. New York alleges NovaTech promised weekly returns of 2% to 4%. Payment processor records cited by the state show about $1.16 billion flowed into NovaTech from August 2019 to May 2023, while only $26 million went to a trading platform, where traders reportedly lost $18.2 million. The state also says Cynthia Petion approved at least $134.5 million in withdrawals to wallets held by the couple and that they have not provided investor records or a financial accounting. More than 11,000 New Yorkers reportedly invested in NovaTech and the founders’ earlier venture, AWS Mining, which authorities say used high-return and recruitment incentives to target Haitian and other immigrant communities. Separately, four promoters agreed to pay a combined nearly $6 million and were permanently barred from the securities, commodities and cryptocurrency industries. The settlements are separate from the claim against the founders and amount to less than 0.5% of the requested judgment; the state has not confirmed that the money has reached investors or outlined how it will collect the larger sum. For crypto traders, the case highlights ongoing enforcement and investor-protection risks, but it does not directly concern a specific traded cryptocurrency. The next key development is the court’s decision on monetary relief and any recovery effort.