New York AG seeks $1.3B from founders in NovaTech crypto fraud case

New York Attorney General Letitia James is seeking roughly $1.3 billion in damages and disgorgement from NovaTech founders Cynthia Petion and Eddy Petion—not announcing money recovered for investors. The October 22, 2026, announcement also detailed nearly $6 million in separate settlements with four promoters of NovaTech and AWS Mining. Key takeaways The founders’ financial liability remains before the court. Four promoters face permanent financial-industry bans. Investigators traced only a small portion of NovaTech deposits to its trading platform. Cynthia Petion and NovaTech face a separate financial proceeding A court entered a default judgment on August 4, 2025 , against the Petions and related companies after the couple left the United States and failed to respond to the lawsuit.

BeCrypto News shows a short excerpt and links to the publisher. The full report belongs to The Cryptonomist.