CryptoSlate
New York Attorney General Letitia James asked a state court on Oct. 22 to order cryptocurrency investment company NovaTech, founders Cynthia and Eddy Petion, and related companies to pay $1,367,023,585, including interest, over the NovaTech fraud. The request follows an Aug. 4, 2025 default order that found the defendants liable and ordered investor damages and disgorgement of money obtained through fraud, with the amounts left to written submissions. The Attorney General's office says more than 11,000 New Yorkers lost tens of millions of dollars in NovaTech and the related AWS Mining scheme.
Why it matters
New York's calculation separates investor principal, trading-platform transfers and interest. The requested disgorgement starts with approximately $1.161 billion in identified investor cryptocurrency deposits, less about $26 million sent to the trading platform, producing $1,134,549,691 in principal before $232,473,894 in interest. The state argues that withdrawals paid to investors and promoters came from other investors' deposits and should not reduce NovaTech's surrender obligation.
The schemes targeted immigrant and religious communities, particularly Haitian New Yorkers, through prayer groups, social media and WhatsApp. The size of the claim is substantial, but the path from liability to money in victims' hands remains unsettled. The request does not establish that the full sum has been awarded, collected or distributed.
Market impact
Victim recovery depends on matching blockchain records to people. Most deposit usernames cannot be reliably linked to individuals without the court-ordered accounting the defendants have failed to provide, while most wallet withdrawals do not identify recipients by name. That limits what the available records show about individual losses and the practical allocation of any recovery.
Separately, the announcement lists nearly $6 million in promoter obligations for victims' benefit. Frantz Ciceron's $2 million total includes $850,000 within 30 days of court execution and four $125,000 installments each Dec.
Frequently asked questions
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Is the $1.37B NovaTech claim already available to victims?
The Oct. 22 filing requests payment after an Aug. 4, 2025 default order that found the defendants liable. It does not establish that the money has been awarded, collected or distributed to victims.
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How did New York calculate its requested $1.37B NovaTech damages?
New York starts with about $1.161 billion in identified investor crypto deposits, subtracts roughly $26 million sent to a trading platform, and calculates $1,134,549,691 in principal before $232,473,894 in interest.
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Why can't New York match most NovaTech losses to individual victims?
Most deposit usernames cannot be reliably matched without the court-ordered accounting the defendants have failed to provide. Most wallet withdrawals also do not identify recipients by name, limiting what the records show about individual losses.
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When are Frantz Ciceron's promoter payments due?
Ciceron's cash terms call for $850,000 within 30 days of court execution, followed by four $125,000 installments each Dec. 31 from 2026 through 2029. His total obligation is $2 million, including rights to present and future EminiFX receivership distributions.
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Which communities did the NovaTech and AWS Mining schemes target?
New York says the schemes targeted immigrant and religious communities, particularly Haitian New Yorkers, through prayer groups, social media and WhatsApp.
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