Switch to seedless. Get 30% off with SWITCH30 till Oct 26NY AG seeks $1.37B from NovaTech founders in crypto fraud
6.6 Regulation NY AG seeks $1.37B from NovaTech founders for alleged Ponzi scheme. $1.16B raised, only $26M traded. Four promoters settled for $6M. Over 11,000 New Yorkers impacted.
New York Attorney General Letitia James is seeking approximately $1.37 billion from NovaTech founders Cynthia and Eddy Petion following a default judgment in a case alleging they operated a large-scale crypto Ponzi and pyramid scheme. Court documents reveal that from August 2019 to May 2023, NovaTech collected over $1.16 billion in cryptocurrency deposits from global investors, but only about $26 million was actually used for trading. The rest was allegedly used to pay returns to earlier investors and recruitment bonuses, with at least $134.5 million traced to the founders’ personal wallets. The schemes, including the earlier AWS Mining operation, specifically targeted immigrant communities by promising high returns, resulting in significant losses for more than 11,000 New Yorkers. Four NovaTech promoters have agreed to pay nearly $6 million in settlements and accepted permanent bans from the financial industry. The Attorney General’s office is seeking $1.13 billion in disgorgement and $232.5 million in prejudgment interest. The case follows a default judgment after the Petions failed to respond to the lawsuit and left the country.
