New York Attorney General Letitia James asked a court on Thursday, October 22, to order NovaTech founders Cynthia and Eddy Petion to pay about $1.37 billion: $1.13 billion in disgorgement plus $232.5 million in prejudgment interest. A default judgment was entered in August 2025 after the couple did not respond to the lawsuit, and the attorney general’s office says they have since left the country.
The case began in June 2024 against NovaTech and AWS Mining, which the attorney general alleges ran illegal pyramid schemes. According to CoinPayments records, investors deposited $1.16 billion in cryptocurrency into NovaTech’s wallet between August 2019 and May 2023. At least $134.5 million in withdrawals went to wallets linked to the Petions, with Cynthia authorizing the transfers.
NovaTech also deposited $25.99 million with B2Broker between August 2019 and April 2023, and traders lost $18.19 million of that amount.
Four promoters have already agreed to pay nearly $6 million in disgorgement and are permanently barred from the securities, commodities and crypto industries.
Because a default judgment is already in place, the new filing asks the court to set the amount the founders must pay rather than to decide whether they are liable.
The filing shows state regulators continuing to pursue crypto fraud through civil courts. Collecting from defendants who now live outside the United States may prove difficult.
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Sources:
- The Block: New York seeks over $1.3 billion from NovaTech founders after couple fled the US
- Crypto Times: NovaTech Founders Face $1.37B Demand From NY AG
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