New York AG seeks $1.37 billion from fugitive NovaTech founders
New York Attorney General Letitia James is seeking $1.37 billion from NovaTech founders Cynthia and Eddy Petion following an August 2025 default judgment, alleging the couple ran a massive cryptocurrency pyramid scheme before fleeing the country.
New York Attorney General Letitia James is asking a state court to order NovaTech founders Cynthia and Eddy Petion to pay $1.37 billion following a default judgment entered in August 2025. The couple reportedly fled the United States after being sued alongside their platform in June 2024 for orchestrating an alleged cryptocurrency pyramid scheme.[1][5][6]
The monetary relief sought against the founders comprises $1.13 billion in disgorgement alongside $232.5 million in prejudgment interest. According to prosecutors and court filings, NovaTech gathered $1.16 billion in crypto deposits from 2019 to 2023 by promising weekly returns of 2% to 4%, but it deployed new investor deposits to pay out earlier participants. Only $25.99 million was ever allocated to trading, resulting in $18.19 million in trading losses, while investigators traced at least $134.5 million directly to wallets linked to the Petions.[5][7][8]
The state's lawsuit detailed that the scheme targeted immigrant groups, particularly Haitian New Yorkers, through prayer groups, WhatsApp chats, and social media, leaving more than 11,000 New Yorkers with substantial losses. Alongside the motion against the founders, the attorney general's office announced settlements with four top promoters—Martin Zizi, Frantz Ciceron, Ricardo Roy, Sr., and James Corbett—who agreed to pay nearly $6 million in disgorgement and accepted permanent bans from New York's securities, commodities, and cryptocurrency industries.[2][5][6]
Key facts
- New York Attorney General Letitia James is seeking $1.37 billion from NovaTech founders Cynthia and Eddy Petion.
- The sum sought from the founders includes $1.13 billion in disgorgement and $232.5 million in prejudgment interest.
- A default judgment was entered against the Petions in August 2025 after the couple fled the United States.
- NovaTech collected $1.16 billion in crypto deposits between 2019 and 2023, but traded only $25.99 million and lost $18.19 million.
- Investigators traced at least $134.5 million in investor funds to crypto wallets controlled by Cynthia and Eddy Petion.
- The scheme lured victims by targeting immigrant communities, particularly Haitian New Yorkers, through prayer groups and social media.
- Four NovaTech promoters agreed to pay nearly $6 million in disgorgement and received permanent bans from the securities, commodities, and crypto industries.
Sources · 8 sources
- CN
crypto.news@cryptodotnewsPost on X ·
JUST IN: New York seeks $1.37 billion from NovaTech founders Attorney General Letitia James alleges the crypto investment scheme collected $1.16 billion in deposits, with at least $134.5 million withdrawn to wallets linked to founders Cynthia and Eddy Petion, who have since reportedly fled the US.
Open source - DE
Decrypt@DecryptMediaPost on X ·
Crypto Scammers Who Used Prayer Groups to Lure Victims Must Pay $1.3 Billion, Says New York https://t.co/I6SyMRyXgB
Open source - TB
The BlockArticle ·
New York seeks over $1.3 billion from NovaTech founders after couple fled the US New York wants $1.3 billion from NovaTech's founders, whose platform took in $1.16 billion and traded a fraction of it.
Open source - CT
Coin TelegraphArticle ·
New York AG seeks $1.37B from NovaTech founders over Ponzi scheme The request follows an August 2025 default judgment, with the AG also announcing nearly $6 million in settlements with four promoters.
Open source - WB
Wu Blockchain@WuBlockchainPost on X ·
New York AG Seeks $1.37B From NovaTech Founders Over Alleged Crypto Ponzi Scheme New York AG seeks $1.37 billion from NovaTech founders Cynthia and Eddy Petion: $1.13 billion in disgorgement plus $232.5 million in prejudgment interest. Court filings show $1.16 billion in crypto deposits (2019–2023); just $25.99 million went to trading, losing $18.19 million, while at least $134.5 million reached founders’ wallets. Prosecutors allege NovaTech promised 2%–4% weekly returns, paying investors with new deposits. The founders reportedly fled the U.S. after an August 2025 default judgment. Four promoters agreed to pay nearly $6 million and accepted permanent industry bans.
Open source - TB
The Block@TheBlockCoPost on X ·
THE BLOCK: New York AG Letitia James is seeking $1.3 billion from NovaTech founders Cynthia and Eddy Petion following default judgment. The ruling came after the couple fled the country. Four promoters will pay nearly $6 million in disgorgement and are permanently barred from the securities, commodities, and cryptocurrency industries, according to the AG's office.
Open source - SI
Solid Intel 📡@solidintel_xPost on X ·
INTEL: New York seeks $1.37 billion from fugitive NovaTech founders after investigators traced $134.5 million in investor funds to their crypto wallets https://t.co/zfrWlBxU7w
Open source - CO
CoinMarketCap@CoinMarketCapPost on X ·
LATEST: ⚖️ NY Attorney General Letitia James is seeking $1.37B from NovaTech founders Cynthia and Eddy Petion, covering about $1.13B in investor funds plus $232.5M in interest. https://t.co/Uk7IwY6jI3
Open source