New York AG Seeks $1.37 Billion From Fugitive NovaTech Founders

New York Attorney General Letitia James is seeking more than $1.37 billion in financial penalties and restitution from the fugitive founders of collapsed cryptocurrency platform NovaTechFx. The formal filing in New York state court targets Cynthia and Eddy Petion following an August 2025 default judgment issued against the couple after they failed to appear in court.

The proposed monetary judgment includes roughly $1.13 billion in disgorgement to forfeit ill-gotten gains alongside approximately $232.5 million in prejudgment interest. State prosecutors also announced nearly $6 million in negotiated settlements with four high-ranking promoters who helped recruit investors into the sprawling operation.

According to the Attorney General's office, NovaTech operated between 2019 and 2023 as a multi-level marketing pyramid scheme disguised as an advanced cryptocurrency and foreign exchange trading platform. The company lured hundreds of thousands of investors worldwide, convincing depositors their capital was actively traded by seasoned professionals while promising weekly returns.

In reality, court filings showed that the platform collected over $1.16 billion in digital assets while engaging in minimal legitimate trading activity. Out of the vast sums deposited, investigators determined that only about $26 million was ever actually traded, with the overwhelming balance used to fund withdrawals for earlier participants and sustain the illusion of profitability.

State regulators found that the scheme heavily targeted immigrant communities and faith-based groups across New York and beyond, particularly Haitian-American congregations. Cynthia Petion styled herself as a "Reverend CEO," using religious language, prayer calls, and affinity marketing via WhatsApp and social media to gain the trust of working-class families.

State investigators also traced at least $134.5 million in investor deposits directly into personal bank accounts and private cryptocurrency wallets controlled by the Petion family. While everyday participants were assured their principal remained safe, the founders used misappropriated customer funds to finance lavish lifestyles and personal investments.

NovaTech ultimately collapsed in 2023 when customer withdrawal requests surged, prompting the platform to freeze investor accounts before abruptly shutting down. By the time state and federal regulators initiated formal legal proceedings in mid-2024, the Petions had shuttered their domestic presence and fled overseas.

While the primary founders remain at large outside United States jurisdiction, the enforcement push has gained traction against key marketing figures. The recent settlements resolve state claims against four prominent promoters, imposing financial penalties totaling nearly $6 million and barring them from securities and commodity trading within New York.

The massive enforcement effort underscores intensifying regulatory scrutiny on affinity fraud in the digital asset space, where multi-level marketing networks often exploit trusted community circles. Regulators have increasingly relied on default judgments, international asset freezes, and promoter accountability when principal operators evade domestic process.

State Supreme Court proceedings will determine the final entry of the $1.37 billion judgment against the Petions and the formal framework for any victim restitution fund. Authorities continue to coordinate across jurisdictions to identify offshore holdings and trace digital wallets, aiming to recover investor assets as legal actions against NovaTech's wider network move forward.