New York Attorney General Letitia James asked a court on October 22, 2026, to order NovaTech founders Cynthia and Eddy Petion and related companies to pay about $1.37 billion. The NovaTech lawsuit already produced a default liability judgment in August 2025; the new filing seeks to set the financial award.
The request advances the state’s recovery effort after the platform’s collapse left tens of thousands of investors unable to withdraw their cryptocurrency. Separately, four promoters agreed to settlements totaling nearly $6 million intended to benefit victims.
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The NovaTech Lawsuit: New York’s $1.37 Billion Request Follows a Liability Judgment
The application seeks about $1.13 billion in investor funds plus $232.5 million in prejudgment interest. The NovaTech request totals about $1.37 billion, with a separate $6.15 million sought over the earlier AWS Mining venture, including interest.
A court entered the default judgment on August 4, 2025, after the Petions and related companies failed to answer the lawsuit. It left the monetary award for a separate proceeding and permanently restricted their participation in cryptocurrency and securities businesses.
NovaTech Trading Records Undermine Its Profit Promises
Investigators calculated that investors deposited about $1.16 billion in cryptocurrency through NovaTech’s CoinPayments account between August 2019 and May 2023. Only $25.99 million reached its B2Broker trading platform—about 2% of the total—and traders subsequently lost about $18.2 million.
NovaTech advertised weekly returns of 2% to 4%. The attorney general alleged that payments to existing participants and recruitment commissions came from newer investors’ deposits rather than trading profits.
Court records also alleged that Cynthia Petion authorized at least $134.5 million in transfers to wallets belonging to herself and Eddy Petion. Investigators deducted the funds transferred for trading when calculating the requested disgorgement.
The attorney general’s October 22 announcement detailed settlements totaling about $5.98 million with four promoters. All four accepted permanent bans from the securities, commodities, and cryptocurrency industries.
The state accused the promoters of misleading investors, acting as unregistered brokers, and encouraging recruitment in exchange for commissions. The agreements require payments intended to benefit victims of NovaTech and AWS Mining.
More than 11,000 New Yorkers were affected across the two schemes. The attorney general said recruitment targeted Haitian and other immigrant communities through prayer groups, social media, and WhatsApp, presenting the investments as safe opportunities for substantial profits.
Victim Recovery Still Depends on the Court and Enforcement
The $1.37 billion remains a request for monetary relief. The court must determine the award sought in the new application, following the existing default liability judgment.
The state said the defendants had not delivered court-required investor records and financial accounting, preventing investigators from identifying every victim or fully reconciling transactions. NovaTech collapsed in 2023, leaving tens of thousands of investors without access to their funds.
The next milestone is the court’s monetary decision. The promoter agreements provide a separate recovery route, while actual restitution from the founders depends on enforcement and asset recovery.
FAQ
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.
This article is for information only and is not financial advice.