Add as a preferred source on GoogleNew York Seeks $1.36 Billion From NovaTech Founders After Default Judgment
The request includes $1.13 billion in restitution and $232.5 million in prejudgment interest. Investors deposited $1.16 billion in cryptocurrency into NovaTech wallets.
New York's attorney general is seeking about $1.36 billion from NovaTech founders Cynthia Petion and Eddy Petion after a court entered a default judgment in the state's lawsuit over alleged crypto fraud.
The request includes $1.13 billion in restitution and $232.5 million in prejudgment interest. Investors deposited $1.16 billion in cryptocurrency into NovaTech wallets from August 2019 through May 2023, and at least $134.5 million went to the founders' wallets.
The attorney general's office alleges NovaTech used money from new investors to pay purported trading profits and referral bonuses. During the same period, NovaTech deposited $25.99 million with B2Broker, a trading platform service provider, and lost $18.19 million in trading.
The court entered the default judgment in August 2025 after the founders did not respond to the lawsuit. Four promoters in the case agreed to pay nearly $6 million toward victim compensation and were permanently barred from the securities, commodities and cryptocurrency industries.
Riza Dagoc
Riza Dagoc reports on regulation, investing and the digital-asset business for TokenPost. Send corrections or tips to info@tokenpost.com.