New York Seeks $1.37 Billion Order Against NovaTech Founders

New York Attorney General Letitia James has asked a court to order NovaTech founders Cynthia Petion and Eddy Petion to pay $1.367 billion in a case alleging crypto fraud.

James announced the request Oct. 22. It seeks about $1.135 billion in disgorgement of alleged proceeds and $232 million in prejudgment interest. A court entered a default judgment against the founders in August 2025, and both have left the United States.

The crypto investment platform received about $1.161 billion worth of deposits between August 2019 and May 2023. About $25.99 million was sent to trading platforms, where roughly $18.19 million was lost in trades. At least $134.5 million in crypto was transferred to wallets belonging to the founders.

James alleges NovaTech attracted investors with promises of weekly returns of 2% to 4% and used funds from new investors to pay purported trading profits and recruitment bonuses. Four promoters in the case agreed to pay nearly $6 million combined and were permanently barred from the securities, commodities and cryptocurrency industries.