New York AG seeks about $1.37B from NovaTech founders over alleged crypto Ponzi that targeted Haitian communities
Decrypt reported on October 23, 2026 that New York Attorney General Letitia James asked a New York County Supreme Court judge to order NovaTech founders Cynthia and Eddy Petion, NovaTech and related companies to pay a…
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Source: decrypt.co · published
What happened
Decrypt reported on October 23, 2026 that New York Attorney General Letitia James asked a New York County Supreme Court judge to order NovaTech founders 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.; that judgment also barred them from the securities, commodities and crypto industries. According to the state, NovaTech falsely marketed itself as a registered hedge fund broker licensed to trade crypto and advertised returns of 2% to 4% a week, while weekly payouts and recruiting bonuses came from new investors' deposits; it collapsed in 2023 leaving tens of thousands unable to withdraw. The AG says the scheme targeted immigrant communities, especially Haitian New Yorkers, through prayer groups, social media and WhatsApp chats, with more than 11,000 New York investors among hundreds of thousands worldwide. The AG also announced settlements of nearly $6 million with four top promoters, who are permanently barred from those industries. The SEC separately charged the Petions in 2024 over what it called a $650 million fraud.
How the scheme allegedly worked
According to the state, 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 authorised user on that account. The state says just under $26 million was sent to NovaTech's trading provider, of which about $18.2 million was lost, and that 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 plus interest.
These are the attorney general's allegations in a court filing; the request for damages has not yet been decided. The default judgment means the Petions did not respond to the lawsuit, not that a trial was held. The promoter settlements are civil and are not criminal convictions. The SEC's separate case remains a set of charges. Anyone approached with weekly returns and recruitment bonuses should treat them as a warning sign.
Source
Decrypt, "Crypto Scammers Who Used Prayer Groups to Lure Victims Must Pay $1.3 Billion, Says New York - Decrypt" (published 23 October 2026).
Red flags
- Promised returns of several percent per week.
- Bonuses for recruiting friends and family.
- Promotion through prayer groups, WhatsApp chats or community leaders.
- Claims of being a registered hedge fund broker or licensed crypto trader that you can't verify.
- Withdrawals that are delayed or blocked.
If you were targeted
- 1Check any investment firm with your state securities regulator, FINRA BrokerCheck or the SEC before investing.
- 2Be wary of investments promoted mainly through your religious or cultural community.
- 3If you lost money with NovaTech or AWS Mining, keep your records and contact the New York Attorney General's office.
- 4Don't pay anyone who offers to recover your losses for a fee.
- 5Report suspected investment fraud to the SEC (sec.gov/tcr) or your state regulator.