New York seeks over $1.3 billion from NovaTech founders after couple fled the US
New York Attorney General Letitia James is seeking over $1.3 billion from NovaTech founders Cynthia and Eddy Petion over an investment scheme that collected more than $1.16 billion in cryptocurrency deposits, according to a court filing on Thursday.The filing alleges CoinPayments records show that investors deposited $1.16 billion worth of cryptocurrency into NovaTech’s wallet between August 2019 and May 2023. At least $134.5 million in withdrawals went to wallets belonging to founders Cynthia and Eddy Petion, with Cynthia authorizing the transfers.By comparison, the company deposited $25.99 million with trading platform provider B2Broker between August 2019 and April 2023, and traders lost $18.19 million of that amount, per the filing. Prosecutors said NovaTech paid purported trading profits and recruitment bonuses using funds from new investors rather than legitimate trading gains.The AG's office is seeking $1.13 billion in disgorgement and a further $232.5 million in prejudgment interest, bringing the total to nearly $1.37 billion.The request follows a default judgment issued in August 2025 after the couple failed to respond to the lawsuit, with James' office saying that the Petions have since fled the country.The case began in June 2024, when James sued NovaTech and cryptocurrency mining company AWS Mining, alleging that both operated illegal pyramid schemes.“NovaTech and AWS Mining scammed thousands of vulnerable New Yorkers by telling them they were making a safe investment when in reality, they were victims of a pyramid scheme,” James said in a statement. “These scammers targeted immigrant and religious communities with the promise of a better life but instead robbed them of their life savings.”Separately, four promoters have agreed to pay nearly $6 million in disgorgement for victims and have been permanently barred from the securities, commodities, and cryptocurrency industries.