New York Attorney General Letitia James has filed a motion seeking $1.37 billion from Cynthia and Eddy Petion, the founders of the defunct crypto and forex trading platform NovaTech, along with related entities. The requested amount comprises approximately $1.13 billion in investor funds to be returned, plus $232.5 million in interest. This legal action follows a court ruling in August 2025 that found the defendants liable by default after they failed to respond to the initial lawsuit.
The complaint alleges that NovaTech operated as a Ponzi scheme, targeting more than 11,000 New Yorkers who lost tens of millions of dollars through both NovaTech and an earlier cryptocurrency mining operation known as AWS Mining. Promoters allegedly exploited Haitian and other immigrant communities using prayer groups, social media, and WhatsApp to promise high returns and recruitment bonuses. According to the filing, investors deposited about $1.16 billion into NovaTech’s crypto wallets between August 2019 and May 2023. However, only roughly $26 million of those funds was actually deposited with the platform’s trading provider, B2Broker, for legitimate trading activities.
In addition to the primary claim against the founders, the AG’s office noted that four individuals who recruited investors have agreed to pay nearly $6 million in settlements intended to benefit victims. The current motion also seeks approximately $6.15 million, including interest, specifically regarding the collapse of AWS Mining in 2019. NovaTech itself collapsed in 2023, leaving tens of thousands of investors unable to withdraw their funds. Attorney General James originally sued NovaTech, AWS Mining, and associated companies in June 2024.
The pursuit of $1.37 billion underscores the severe financial impact of unregulated crypto schemes on vulnerable communities, particularly within immigrant populations where trust networks are often exploited for recruitment. By highlighting the disparity between the $1.16 billion collected and the mere $26 million allocated to actual trading, the case reinforces the fraudulent nature of NovaTech’s operations rather than any genuine market failure or technical error.
Enforcing such a massive judgment against founders who have already defaulted presents significant operational challenges for regulatory bodies. While the settlement of nearly $6 million from recruiters offers some immediate relief to victims, it represents a fraction of the total losses. The outcome will likely serve as a critical test case for how effectively state attorneys general can recover assets from decentralized finance platforms and whether future enforcement actions can deter similar predatory marketing tactics in the crypto sector.
