{"id":243241,"date":"2026-10-23T21:21:46","date_gmt":"2026-10-23T21:21:46","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=243241"},"modified":"2026-10-23T21:21:46","modified_gmt":"2026-10-23T21:21:46","slug":"ny-seeks-1-37-billion-judgment-against-operators-of-novatech-crypto-ponzi-scheme","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=243241","title":{"rendered":"NY Seeks $1.37 Billion Judgment Against Operators of NovaTech Crypto Ponzi Scheme"},"content":{"rendered":"

Bitcoin Magazine<\/a><\/p>\n

NY Seeks $1.37 Billion Judgment Against Operators of NovaTech Crypto Ponzi Scheme<\/a><\/p>\n

<\/div>\n

New York Attorney General Letitia James is trying<\/a> to secure a $1.37 billion judgment against the operators of NovaTech and its predecessor AWS Mining, two successive cryptocurrency investment schemes that allegedly defrauded hundreds of thousands of investors worldwide out of more than $1 billion.<\/p>\n

Alleged founders Cynthia and Eddy Petion never appeared in court and, according to the AG\u2019s office, fled the country.<\/p>\n

\u201cNovaTech 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,\u201d James said in a statement. \u201cThese scammers targeted immigrant and religious communities with the promise of a better life but instead robbed them of their life savings.\u201d<\/p>\n

The schemes, AWS Mining and later NovaTech, relied on promoters who recruited heavily in Haitian and other immigrant communities \u2014 through prayer groups, WhatsApp chats, and ads in Haitian Creole.<\/p>\n

AWS Mining sold crypto mining contracts promising 15 to 20 percent monthly returns and 200 percent within 15 months. It collapsed in 2019. The Petions then launched NovaTech, marketed as a registered hedge fund broker, promising weekly trading returns of two to four percent \u2014 more than 140 percent a year.<\/p>\n

Those returns were fabricated, according to prosecutors. Records from B2Broker, which supplied NovaTech\u2019s white-label trading platform, show that of the more than $1 billion investors deposited between 2019 and 2023, only about $26 million was ever actually traded \u2014 and NovaTech\u2019s traders lost $18.2 million of that. Returns to earlier investors came from newer deposits, not trading. When NovaTech collapsed in mid-2023, tens of thousands of investors could not withdraw their funds.<\/p>\n

The AG is also seeking $134.5 million the Petions allegedly withdrew to their own wallets from the investor account Cynthia Petion solely controlled, plus $4.7 million tied to the earlier AWS Mining scheme. A default judgment entered in August 2025 already bars the couple and their companies from the securities, commodities, and cryptocurrency industries.<\/p>\n

Separately, four of the scheme\u2019s top promoters have agreed to pay nearly $6 million in disgorgement to victims and accepted the same industry bans.<\/p>\n

This post NY Seeks $1.37 Billion Judgment Against Operators of NovaTech Crypto Ponzi Scheme<\/a> first appeared on Bitcoin Magazine<\/a> and is written by Mathew Di Salvo<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

Bitcoin Magazine NY Seeks $1.37 Billion Judgment Against Operators of NovaTech Crypto Ponzi Scheme New York Attorney General Letitia James is trying to secure a $1.37 billion judgment against the operators of NovaTech and its predecessor AWS Mining, two successive cryptocurrency investment schemes that allegedly defrauded hundreds of thousands of investors worldwide out of more […]<\/p>\n","protected":false},"author":0,"featured_media":243242,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-243241","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/243241"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=243241"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/243241\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/243242"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=243241"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=243241"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=243241"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}