New York seeks $1.3 billion from NovaTech founders accused of defrauding Haitian investors

New York Attorney General Letitia James is asking a court to order Cynthia and Eddy Petion, the founders of the collapsed cryptocurrency company NovaTech, to pay $1.3 billion for their roles in an alleged investment fraud scheme that targeted Haitian and other immigrant communities.

The request, announced Thursday, Oct. 22, follows an August 2025 default judgment against the couple, who fled the country, according to a statement released by the attorney general’s office.

The state seeks damages and disgorgement, a legal remedy that requires defendants to surrender money obtained through unlawful conduct.

NovaTech collected more than $1 billion in cryptocurrency from investors between August 2019 and April 2023, but state investigators say less than $26 million was traded on its platform.

When the company collapsed in May 2023, tens of thousands of investors couldn’t withdraw their funds.

The latest legal filing comes as James announced nearly $6 million in settlements with four leading promoters of NovaTech and AWS Mining.