New York Seeks $1.4B From NovaTech Founders After Default Judgment

On October 22, 2026, New York Attorney General Letitia James formally requested that a court direct NovaTech founders Cynthia and Eddy Petion, along with their associated companies, to pay approximately $1.37 billion. This new filing follows a default liability judgment issued against the defendants in August 2025 and is designed to establish the final financial penalty.

This legal step advances the state’s efforts to recover funds after the platform’s collapse prevented tens of thousands of participants from withdrawing their cryptocurrency assets. Additionally, four promoters have agreed to settlements amounting to nearly $6 million to aid the victims.

The NovaTech Lawsuit: New York’s $1.37 Billion Request Follows a Liability Judgment

The state’s application asks for roughly $1.13 billion in investor funds, alongside $232.5 million in prejudgment interest, bringing the total NovaTech request to about $1.37 billion. Furthermore, a separate $6.15 million, inclusive of interest, is being pursued in connection with the prior AWS Mining venture.

A default judgment was formally entered on August 4, 2025, after the Petions and related entities failed to respond to the legal action. While that ruling left monetary penalties for a subsequent proceeding, it permanently banned the defendants from engaging in cryptocurrency and securities operations.

NovaTech Trading Records Undermine Its Profit Promises

An investigation revealed that between August 2019 and May 2023, investors deposited roughly $1.16 billion in digital assets through NovaTech’s CoinPayments account. However, only $25.99 million—amounting to roughly 2% of the total—ever made it to the B2Broker trading platform, where traders ultimately lost about $18.2 million.

Although NovaTech promoted weekly gains ranging from 2% to 4%, the attorney general asserted that payouts to existing participants and recruitment incentives were funded by incoming deposits from newer users instead of actual trading returns.

Furthermore, court documents noted that Cynthia Petion authorized the transfer of at least $134.5 million to personal wallets belonging to herself and Eddy Petion. Investigators accounted for these trading-related movements when calculating the total amount requested for disgorgement.

Promoter Settlements Create a Separate Route to Victim Relief

The announcements made by the attorney general on October 22 also outlined approximately $5.98 million in settlements involving four distinct promoters. All four individuals accepted lifetime bans from the commodities, securities, and cryptocurrency sectors.

State authorities charged these promoters with providing misleading information to investors, functioning as unregistered brokers, and pushing recruitment in exchange for financial commissions. The resulting settlement terms mandate payments dedicated to helping victims of both NovaTech and AWS Mining.

The two fraudulent schemes impacted more than 11,000 residents in New York. According to the attorney general, recruitment heavily targeted Haitian and other immigrant populations via WhatsApp, social media networks, and prayer groups, pitching the investments as secure paths to high returns.

Victim Recovery Still Depends on the Court and Enforcement

The sought-after sum of $1.37 billion is currently a request for financial relief, meaning the court must officially rule on the award outlined in the latest filing following the earlier default liability judgment.

State officials reported that the defendants failed to provide mandated investor records and financial accounts, which has hindered investigators from pinpointing every affected individual or fully auditing all transactions. NovaTech collapsed in 2023, leaving countless investors cut off from their money.

The next critical step is the court’s upcoming monetary ruling. While the promoter agreements offer an alternative path to recovery, actual financial restitution from the founders relies entirely on effective enforcement and asset retrieval.

FAQ

When did New York first sue NovaTech and AWS Mining?

Letitia James filed the lawsuit in June 2024 against the companies, their founders, and several promoters. The civil action accused them of operating illegal pyramid schemes.

Which four promoters agreed to settlements, and how much must each pay?

Martin Zizi agreed to pay $2.9 million, Frantz Ciceron $2.05 million, James Corbett $750,000, and Ricardo Roy Sr. $275,861. The payments are intended to benefit victims of the schemes.

What weekly returns did NovaTech advertise to investors?

NovaTech promoted cryptocurrency and foreign exchange trading packages promising weekly profits of 2% to 4%. It also told investors they could withdraw their deposits and profits whenever they wanted.

How much of investor money actually reached NovaTech’s trading platform?

Investigators traced about $1.16 billion in deposits through CoinPayments, but only $25.99 million reached the B2Broker trading platform—roughly 2%. Traders there subsequently lost about $18.2 million.

When did AWS Mining, the earlier scheme associated with the Petions, collapse?

AWS Mining collapsed in 2019 after failing to generate enough revenue to meet its promised payouts. It had advertised monthly returns of 15% to 20%, along with recruitment commissions.

What is the total amount requested in the October 22, 2026 filing?

The filing asks for about $1.13 billion in investor funds and $232.5 million in prejudgment interest for NovaTech (totaling about $1.37 billion), plus an additional $6.15 million regarding the AWS Mining venture.

This article is for information only and is not financial advice.