New York Attorney General Letitia James has requested that a court mandate Cynthia and Eddy Petion, founders of the failed digital asset and forex platform NovaTech, alongside associated entities, to surrender $1.37 billion relating to a fraudulent Ponzi operation.
As stated in a court document released on Thursday, the attorney general is demanding the reimbursement of roughly $1.13 billion belonging to backers, alongside $232.5 million in accrued interest.
The judiciary held the Petion couple and their corporate bodies accountable via default judgment in August 2025 following their omission to reply to the legal complaint.
Based on information from the attorney general’s office, a quartet of individuals who brought participants into NovaTech have individually consented to contribute roughly $6 million via settlements aimed at aiding those affected.
The attorney general’s office noted that upwards of 11,000 residents in New York forfeited tens of millions of dollars through NovaTech and an antecedent digital currency mining project named AWS Mining. The legal document stated that marketers directed their efforts toward Haitian and additional immigrant populations utilizing prayer assemblies, social platforms, and WhatsApp, while guaranteeing substantial yields and referral incentives.
The documentation outlines that backers transferred approximately $1.16 billion into NovaTech digital currency addresses spanning the period from August 2019 through May 2023. Out of that total, merely about $26 million was transferred to the exchange’s execution partner, B2Broker, for market activity, per the attorney general’s findings.
The legal motion independently requests roughly $6.15 million, inclusive of interest, concerning the AWS Mining venture.
AWS Mining failed in the year 2019. NovaTech ceased operations in 2023, stranding tens of thousands of participants who could no longer extract their capital. James initiated legal action against NovaTech, AWS Mining, and additional connected corporations in June 2024.
Cointelegraph reached out to the New York Attorney General’s Office for remarks concerning how any retrieved money might be allocated among victims and what measures could be implemented to execute the ruling, but had not obtained a reply prior to publication.
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Originally published at https://cointelegraph.com/news/new-york-ag-novatech-founders-companies-crypto-ponzi?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound.
