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

On October 22, 2026, New York Attorney General Letitia James petitioned a court to mandate that NovaTech founders Eddy and Cynthia Petion, alongside associated entities, pay approximately $1.37 billion. Following an August 2025 default liability judgment in the NovaTech case, this recent submission aims to establish the final financial penalty.

This motion advances state recovery efforts after the platform collapsed, stranding tens of thousands of investors who could no longer access their cryptocurrency holdings. Additionally, four promoters reached settlement agreements totaling nearly $6 million to aid affected victims.

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

The legal filing asks for roughly $1.13 billion in investor capital alongside $232.5 million in prejudgment interest, bringing the total NovaTech demand to about $1.37 billion. An additional $6.15 million, inclusive of interest, is requested regarding the prior AWS Mining project.

A default judgment was issued on August 4, 2025, after the Petions and related businesses neglected to respond to the complaint. While that ruling permanently barred them from operating in the cryptocurrency and securities sectors, it deferred the financial penalties to a subsequent proceeding.

NovaTech Trading Records Undermine Its Profit Promises

Forensic reviews revealed that participants deposited roughly $1.16 billion in digital assets via NovaTech’s CoinPayments gateway from August 2019 to May 2023. Out of that sum, only $25.99 million—roughly 2%—made it to the B2Broker trading platform, where traders ultimately lost about $18.2 million.

NovaTech marketed weekly yields ranging from 2% to 4%. The attorney general asserted that payouts and recruitment bonuses given to existing members were funded by incoming deposits from newer participants rather than legitimate trading gains.

Furthermore, court documents claimed Cynthia Petion directed at least $134.5 million toward personal crypto wallets controlled by herself and Eddy Petion. When calculating the requested disgorgement amounts, investigators subtracted funds that were actually routed into trading.

Promoter Settlements Create a Separate Route to Victim Relief

The October 22 announcement from the attorney general outlined agreements with four promoters totaling approximately $5.98 million. All four individuals accepted lifetime prohibitions from the commodity, securities, and cryptocurrency sectors.

The state charged these promoters with deceiving investors, functioning as unregistered brokers, and pushing recruitment in exchange for bonuses. The settlement terms mandate financial contributions designed to compensate victims of both NovaTech and AWS Mining.

Combined, the two schemes impacted more than 11,000 New Yorkers. According to the attorney general, recruitment efforts focused heavily on Haitian and other immigrant populations through social media channels, WhatsApp groups, and prayer circles, framing the ventures as secure pathways to massive wealth.

Victim Recovery Still Depends on the Court and Enforcement

The figure of $1.37 billion remains a requested monetary penalty. Building on the prior default liability ruling, the court must now formally decide on the award amount detailed in the latest filing.

Authorities noted that the defendants failed to provide mandated financial accounts and investor logs, hindering investigators from mapping every victim or fully auditing the ledger. NovaTech collapsed in 2023, cutting off tens of thousands of participants from their funds.

The upcoming judicial decision on financial penalties marks the next major step. While the promoter accords offer an alternative avenue for reimbursement, actual restitution from the founders relies heavily on asset tracing and legal enforcement.

?FAQ

01When did New York first sue NovaTech and AWS Mining?

Letitia James initiated the legal action in June 2024 targeting the companies, their founders, and multiple promoters, charging them in a civil suit with running unlawful pyramid schemes.

02Which 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. These funds are designated to support victims of the operations.

03What weekly returns did NovaTech advertise to investors?

NovaTech pitched foreign exchange and cryptocurrency packages promising weekly yields between 2% and 4%, while assuring investors they could withdraw their principal and gains at any time.

04How much of investor money actually reached NovaTech’s trading platform?

Investigators tracked 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.

05When did AWS Mining, the earlier scheme associated with the Petions, collapse?

AWS Mining collapsed in 2019 after failing to generate sufficient revenue to cover its promised distributions. It had marketed monthly gains of 15% to 20% alongside referral commissions.

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