
Cynthia and Eddy Petion accused of defrauding investors of over $1 billion through a crypto-based Ponzi scheme.
AI-generated summary
NovaTech was a crypto trading platform that collapsed in 2023. The founders are accused of running a Ponzi scheme that defrauded over 11,000 New Yorkers.
New York Attorney General Letitia James wants the founders of collapsed crypto trading platform NovaTech to pay nearly $1.4 billion. Collecting it may be another matter: The couple has fled the country, according to James.
In a filing in New York County Supreme Court on Thursday, James’ office asked a judge to order Cynthia and Eddy Petion, NovaTech and related companies to pay about $1.37 billion in damages, disgorgement, and interest.
The request follows an August 2025 default judgment issued after the Petions fled the U.S. and failed to respond to the state’s lawsuit. That judgment also banned them from the securities, commodities and crypto industries.
James also announced settlements totaling nearly $6 million with four of the scheme’s top promoters: Martin Zizi, Frantz Ciceron, Ricardo Roy Sr,. and James Corbett. They’ll pay the money to benefit victims and are permanently barred from those industries.
James first sued NovaTech and AWS Mining in June 2024, alleging they defrauded investors of more than $1 billion. Two months later, the SEC charged the Petions and others over what it called a $650 million fraud.
According to the attorney general’s office, the Petions targeted immigrant communities, particularly Haitian New Yorkers, through prayer groups, social media, and WhatsApp chats, using ads in Haitian Creole and religious messaging. More than 11,000 New Yorkers were among the hundreds of thousands of investors worldwide.
“These scammers targeted immigrant and religious communities with the promise of a better life but instead robbed them of their life savings,” James said in a statement.
NovaTech falsely marketed itself as a registered hedge fund broker licensed to trade crypto in the U.S. and advertised returns of 2% to 4% a week, or more than 140% a year, according to the state.
In reality, it sent just under $26 million to its trading provider between 2019 and 2023 and lost about $18.2 million of it. Weekly payouts and recruiting bonuses came from new investors’ deposits, the state said. When NovaTech collapsed in 2023, tens of thousands of investors couldn’t withdraw their funds.
Data from payment processor CoinPayments shows investors deposited roughly $1.16 billion in crypto into NovaTech’s wallet between August 2019 and May 2023, and Cynthia Petion was the only authorized user on the account. At least $134.5 million went to wallets belonging to the Petions. After subtracting the money sent for trading, the state is seeking about $1.13 billion in disgorgement, plus $232 million in interest.
Before NovaTech, the Petions were top U.S. promoters of AWS Mining, which promised monthly returns of 15% to 20% from crypto mining before collapsing in 2019. Cynthia Petion admitted in a WhatsApp chat to making at least $3 million from that scheme, according to the filing.
AI outlook — possibilities, not facts
The state will attempt to seize international assets of the Petions.
Likely · Within months

Coinbase will automatically convert customer GYEN holdings to USDC between Oct 26 and Oct 30. This follows GMO-Z.com Trust Company's decision to wind down the yen-backed stablecoin ahead of a final Nov 11 redemption deadline.

U.S. spot Bitcoin ETFs recorded a $635.6 million outflow on Thursday, the largest single-day exit this month. The reversal pushed October net flows into negative territory, while Ethereum and Solana ETFs also saw significant losses amid broader market volatility.

Bitcoin fell below $81,000 during Friday's US market open as Brent crude reached $116 per barrel. Rising geopolitical tensions in the Middle East and concerns over US-Iran conflict triggered a market-wide shift toward risk aversion.

Binance has seen a $7.5 billion net outflow of USDT to Tether in 2026, reversing 2025 trends. The exchange's Ethereum-based stablecoin holdings have dropped to $38.8 billion, raising concerns about potential impacts on crypto market liquidity.

Andreessen Horowitz has renamed its crypto fund to 'a16z Frontier,' broadening its investment scope to AI and biology. Meanwhile, crypto markets remain flat as Bitcoin ETFs record $635 million in net outflows.

Bitcoin traded below $82,000 as AI infrastructure financing concerns pressured stock markets. CoreWeave shares hit 17-month lows, while US spot Bitcoin ETFs saw $635 million in outflows and crypto markets recorded $280 million in long liquidations.