New York Attorney General Letitia James is asking a court to order the founders of failed crypto and foreign-exchange platform NovaTech, Cynthia and Eddy Petion, and related companies to pay $1.37 billion over an alleged Ponzi scheme. The request follows a default judgment entered in August 2025 after the defendants did not respond to the state’s lawsuit.
What the New York filing seeks
According to Cointelegraph, a court filing submitted by the attorney general’s office seeks the return of approximately $1.13 billion in investor funds. It also requests $232.5 million in interest, bringing the total sought in connection with NovaTech to about $1.37 billion.
The court had already found the Petions and the associated companies liable by default. A default judgment can be entered when a defendant fails to respond to legal claims, meaning the latest request focuses on the financial remedies sought by the state.
The filing also seeks roughly $6.15 million, including interest, in connection with AWS Mining, an earlier crypto-mining scheme linked to the case. AWS Mining collapsed in 2019, while NovaTech failed in 2023, leaving tens of thousands of investors unable to withdraw their money.
How investors’ money moved
The attorney general’s filing says investors deposited approximately $1.16 billion into NovaTech’s cryptocurrency wallets between August 2019 and May 2023. Only about $26 million of that amount was deposited with B2Broker, the platform’s trading provider, for trading, according to the state.
The allegations describe a system that attracted participants with promises of high returns and bonuses for recruiting additional investors. The attorney general’s office said promoters targeted Haitian and other immigrant communities through prayer groups, social media and WhatsApp.
More than 11,000 New York residents lost tens of millions of dollars through NovaTech and AWS Mining, the office said. James filed the lawsuit against NovaTech, AWS Mining and other associated companies in June 2024.
Four people who helped recruit investors into NovaTech have separately agreed to settlements totaling nearly $6 million. The attorney general’s office said those payments are intended to benefit victims.
What happens next
The available material does not specify how recovered funds would be distributed or what enforcement measures could be used to collect the judgment. Cointelegraph sought comment from the New York Attorney General’s Office on those questions but had not received a response by publication.
The case highlights the difference between a court’s finding of liability and the practical recovery of money for affected investors. The requested judgment sets out the amount the state is seeking, while the collection and distribution process remains separate.
Current market picture
Moneyiar market data at the stated times showed declines across the four tracked assets:
- NEAR Protocol (NEAR): $4.5613104479, down 7.43% over 24 hours and 10.32% over seven days, as of October 24, 2026, 08:08 +03:30.
- Four (FORM): $0.2244702564, down 4.99% over 24 hours and 12.39% over seven days, as of October 24, 2026, 08:09 +03:30.
- Request (REQ): $0.0516368566, down 2.81% over 24 hours and 1.39% over seven days, as of October 24, 2026, 08:09 +03:30.
- Loaded Lions (LION): $0.0012093711, down 2.73% over 24 hours and 3.61% over seven days, as of October 24, 2026, 08:08 +03:30.
