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New York Attorney General Letitia James is pursuing $1.37 billion from NovaTech founders Cynthia and Eddy Petion, broken down as $1.13 billion in disgorgement plus $232.5 million in prejudgment interest. Court filings reveal that of $1.16 billion in crypto deposits collected between 2019 and 2023, only $25.99 million was ever directed to trading, which itself lost $18.19 million, while at least $134.5 million flowed directly into the founders' wallets.
Why it matters
NovaTech promised investors weekly returns of 2% to 4%, a classic Ponzi structure in which new deposits funded payouts to earlier participants rather than any real trading activity. The scheme specifically targeted Haitian communities, making it both a financial fraud case and a targeted exploitation of a vulnerable population. The founders reportedly fled the United States following an August 2025 default judgment, leaving the AG's office to pursue the full recovery through the courts.
Market impact
Four promoters who helped distribute the scheme have already agreed to pay nearly $6 million collectively and accepted permanent bans from the financial industry. The $1.37 billion figure sought from the Petions is one of the largest crypto fraud recovery demands filed by a state AG, and it signals that enforcement actions are increasingly willing to chase founders across borders. Investors in similar high-yield crypto programs should treat this case as a benchmark for how aggressively regulators will now pursue restitution.
Source: [Attorney General James Secures Nearly $6 Million From Crypto Scammers Who Targeted Haitian Communities — New York State Attorney General](https://ag.ny.gov/press-release/2026/attorney-general-james-secures-nearly-6-million-crypto-scammers-who-targeted)
Frequently asked questions
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How much money did NovaTech actually put into crypto trading out of the $1.16B it collected?
Only $25.99 million of the $1.16 billion in deposits was directed to trading, and that trading lost $18.19 million, meaning virtually none of investors' funds generated the promised returns.
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Why did NovaTech specifically target Haitian communities?
Court filings and the AG's press release describe the scheme as deliberately targeting Haitian communities, though the seed does not detail the specific recruitment tactics used to reach that population.
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What happened to the four NovaTech promoters who were not the founders?
Four promoters agreed to pay nearly $6 million collectively and accepted permanent bans from the financial industry as part of their settlements with the New York AG.
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Where are NovaTech founders Cynthia and Eddy Petion now?
The founders reportedly fled the United States following an August 2025 default judgment, which is why the AG is pursuing the $1.37 billion recovery demand through the courts rather than a negotiated settlement.
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What does the $1.37B figure consist of and why is it significant?
The $1.37 billion breaks down as $1.13 billion in disgorgement of ill-gotten gains plus $232.5 million in prejudgment interest. It ranks among the largest crypto fraud recovery demands ever filed by a state attorney general.
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