Key Takeaways
- New York asks a court to order NovaTech founders Cynthia and Eddy Petion to pay $1.3 billion in damages and disgorgement.
- The $1.3 billion is a request to a court, not a judgment. It follows a default judgment issued in August 2025.
- The attorney general says less than $26 million was ever traded on NovaTech's platform, against more than $1 billion deposited. That is under 2.6 percent.
New York Attorney General Letitia James asked a court on October 22, 2026, to order NovaTech founders Cynthia and Eddy Petion to pay $1.3 billion in damages and disgorgement. The same release says the office secured nearly $6 million from the leaders of the scheme. The Block reports that the four promoters agreed to pay that amount.
The request is a court filing, not a ruling. The sources report no decision on the amount.
NovaTech deposits and withdrawals in the attorney general's lawsuit
In June 2024, the office sued NovaTechFx, which it calls NovaTech, and AWS Mining Pty Ltd. The office alleged that both targeted immigrant communities, particularly Haitian New Yorkers, with fraudulent promises of high returns while running illegal pyramid schemes. A pyramid scheme pays earlier investors with money from newer investors instead of real profits.
The office says the scheme defrauded hundreds of thousands of investors worldwide, including more than 11,000 New Yorkers. According to The Block, the filing alleges that records show $1.16 billion in deposits into NovaTech's wallet between August 2019 and May 2023. It also alleges that at least $134.5 million in withdrawals went to wallets belonging to the founders, with Cynthia authorizing the transfers.
Attorney General Letitia James said NovaTech and AWS Mining "scammed thousands of vulnerable New Yorkers by telling them they were making a safe investment when in reality, they were victims of a pyramid scheme."
NovaTech default judgment, the $1.3 billion inquest and four promoters
A default judgment is a ruling against a defendant who does not answer a lawsuit. According to The Block, the court issued one against the couple in August 2025, after they failed to respond. The office says the couple fled the country, and that the judgment banned them from the securities, commodities and cryptocurrency industries.
The office has now filed an inquest, a court proceeding that sets the amount owed after a default. It asks the court to order the Petions to pay $1.3 billion in damages and disgorgement. Disgorgement is the return of money gained through wrongdoing. The Block reports $1.13 billion in disgorgement and $232.5 million in prejudgment interest, meaning interest that accrues before a final judgment. It puts the total at nearly $1.37 billion. The attorney general's office put the request at $1.3 billion, and the sources do not reconcile the two figures.
Four of the scheme's top promoters, Martin Zizi, Frantz Ciceron, Ricardo Roy, Sr., and James Corbett, will pay millions in disgorgement for victims, the office says. They are permanently barred from the securities, commodities and cryptocurrency industries. The Block reports the four will pay nearly $6 million.
What the NovaTech $1.3 billion request does and does not establish
The request does not establish what the founders owe. It is the office's position, put to a court. The four promoters' nearly $6 million is under 0.5 percent of the $1.3 billion requested from the Petions. The sources do not say whether the promoters' payments reduce that request. The sources do not say how much of the request could be collected from the couple.
The office says less than $26 million was ever traded on NovaTech's platform, against more than $1 billion deposited. That is under 2.6 percent. The Block reports that at least $134.5 million of the $1.16 billion in deposits went to wallets belonging to the founders, or about 11.6 percent. Neither ratio appears in the release or in The Block's report.
The release calls Attorney General James a national leader in protecting New York investors and holding cryptocurrency companies accountable. Related WYDE coverage: CFTC Wins $31.48 Million Judgment Against Two Fundsz Crypto Fraud Promoters and Goliath Ventures Founder Pleads Guilty in a $400 Million Crypto Ponzi Scheme.
People Also Ask
What is New York asking the court to order NovaTech's founders to pay?
New York Attorney General Letitia James asked the court to order Cynthia and Eddy Petion to pay $1.3 billion in damages and disgorgement. The Block reports the total is nearly $1.37 billion, including $232.5 million in prejudgment interest.
Is the $1.3 billion a court judgment against the Petions?
No. The $1.3 billion is a request that the attorney general's office filed with the court on October 22, 2026. The sources report no ruling on the amount.
What did the four top promoters of the scheme agree to pay?
The attorney general says Martin Zizi, Frantz Ciceron, Ricardo Roy, Sr., and James Corbett will pay millions in disgorgement for victims. The Block reports the four promoters will pay nearly $6 million.
Sources: New York Attorney General, The Block.