NY Attorney General Pursues $1.37 Billion Recovery From NovaTech Co-Founders in Ponzi Case
Attorney General of New York is pursuing $1.37 billion in damages from NovaTech co-founders and associated entities. Settlements totaling nearly $6 million have been secured from four promoters.
Letitia James, the Attorney General of New York, has requested that a court mandate the co-founders of the now-defunct cryptocurrency and foreign exchange trading platform NovaTech, Eddy Petion and Cynthia Petion, along with affiliated corporate entities, to remit $1.37 billion in connection with their operation of a Ponzi scheme.
According to a court filing submitted on Thursday, the Attorney General is requesting the reimbursement of approximately $1.13 billion in funds belonging to investors, in addition to $232.5 million representing accrued interest.
Following their failure to provide a response to the legal action, the Petions and their associated companies were determined to be liable by default by the court in August 2025.
In separate proceedings, four individuals who served as recruiters bringing investors into the NovaTech operation have consented to pay settlements approaching $6 million, with these funds designated to provide restitution to those who suffered losses, as announced by the office of the Attorney General.
According to statements from the office of the Attorney General, over 11,000 residents of New York sustained losses amounting to tens of millions of dollars as a result of NovaTech and a predecessor cryptocurrency mining operation known as AWS Mining. The legal complaint asserted that those promoting these schemes specifically targeted immigrant communities, including Haitian populations, utilizing prayer groups, social media platforms and WhatsApp messaging to make promises of substantial returns and incentives for recruiting additional participants.
According to the filing, between August 2019 and May 2023, investors transferred approximately $1.16 billion into cryptocurrency wallets controlled by NovaTech. However, only roughly $26 million of these deposits were actually placed with B2Broker, the platform's designated trading provider, for the purpose of executing trades, based on information from the attorney general.
In addition, the motion requests approximately $6.15 million, inclusive of interest, in relation to the AWS Mining operation.
The AWS Mining operation ceased functioning in 2019. NovaTech subsequently failed in 2023, resulting in tens of thousands of participants being unable to access or withdraw their invested capital. In June 2024, James initiated legal proceedings against NovaTech, AWS Mining and additional related corporate entities.
Cointelegraph made contact with the Office of the New York Attorney General seeking clarification regarding the planned distribution method for any funds successfully recovered to compensate victims and what enforcement measures might be implemented to ensure compliance with the judgment, however no response had been provided prior to the time of publication.