New York Attorney General Letitia James is pursuing $1.3 billion in damages from the founders of NovaTechFx after the couple left the United States and a court entered a default judgment against them. The case targets a scheme that prosecutors allege drained more than $1 billion from investors over roughly four years before collapsing in 2023.
The default judgment was entered in August 2025, after Cynthia and Eddy Petion failed to appear in court following their departure from the country.
What NovaTech actually did with investor money
Between August 2019 and April 2023, NovaTech collected more than $1 billion in digital asset deposits from investors globally. Of that amount, prosecutors say only approximately $26 million was ever actually traded. Investor returns were paid using incoming deposits from new participants rather than any real trading profits.
NovaTech collapsed in May 2023, locking thousands of investors out of their accounts and their funds.
Before NovaTech, the Petions were also connected to an operation called AWS Mining, which prosecutors describe as a separate scheme that promised high returns on crypto mining investments. AWS Mining collapsed in 2019. NovaTech appears to have launched shortly after, with the first deposits recorded in August 2019.
Who got hurt and how the scheme spread
James filed the original lawsuit on June 6, 2024, naming NovaTechFx, AWS Mining, the Petions, and associated entities as defendants. The complaint alleges the operations constituted illegal pyramid and Ponzi schemes that reached more than 200,000 investors worldwide, with over 11,000 of those based in New York.
Prosecutors allege that NovaTech specifically targeted Haitian and immigrant communities, recruiting through social networks and religious gatherings. Recruiters reportedly leaned on promises of high returns and cultivated a perception of legitimacy to build trust within tight-knit communities.
On October 22, 2026, James announced that her office had secured nearly $6 million from four promoters who were involved in marketing the scheme. The $1.3 billion figure represents what the AG is now seeking from the Petions themselves through the court, following the August 2025 default judgment.
What the case signals for crypto enforcement
New York’s Martin Act gives the AG’s office unusually broad powers to pursue securities fraud without needing to prove intent, which lowers the evidentiary bar compared to federal prosecution.
The Petions’ departure from the US before the court proceedings concluded complicates actual recovery. A default judgment of $1.3 billion is a significant legal finding, but collecting on it requires locating and seizing assets, which becomes considerably harder when defendants are outside US jurisdiction. The nearly $6 million recovered from promoters so far represents a fraction of what victims allegedly lost.
Disclosure: This article was edited by John Chen. For more information on how we create and review content, see our Editorial Policy.