New York seeks $1.37 billion in NovaTech crypto fraud case

New York Attorney General Letitia James is seeking approximately $1.37 billion from NovaTech founders Cynthia and Eddy Petion following an alleged cryptocurrency investment scheme. The filing seeks $1.13 billion in disgorgement plus interest and other monetary relief.

Investigators allege that between August 2019 and May 2023, investors deposited roughly $1.16 billion in cryptocurrency into NovaTech-linked wallets. While the platform promised weekly returns of 2% to 4%, only about $26 million was reportedly transferred to the trading service B2Broker. The scheme allegedly used new investor deposits to fund payouts and recruitment bonuses.

A court entered a default judgment against the defendants in August 2025 after they failed to respond to the June 2024 complaint. The fraud reportedly targeted hundreds of thousands of investors worldwide, specifically focusing on Haitian and other migrant communities through social media, WhatsApp, and prayer groups. In New York alone, more than 11,000 people lost tens of millions of dollars.