New York Seeks $1.37 Billion From NovaTech in Cryptocurrency Fraud Lawsuit

New York Attorney General Letitia James filed a motion on October 22 requesting a state court to order cryptocurrency investment firm NovaTech, its founders Cynthia and Eddy Petion, and affiliated entities to pay over $1.3 billion in restitution, following a 2025 default judgment establishing liability.

The lawsuit seeks $1,367,023,585 in damages, including accrued interest, arising from the NovaTech fraud scheme. While this amount reflects the state’s pursuit of compensation for affected investors, it does not confirm that funds have been secured, allocated, or distributed to victims.

As noted in the filing, a default order issued on August 4, 2025 determined the defendants liable and mandated investor damages along with disgorgement—the return of ill-gotten gains. However, specific monetary figures were deferred pending further documentation from both parties.

The New York Attorney General’s office reports that more than 11,000 residents lost tens of millions of dollars through investments in NovaTech and the associated AWS Mining operation. These schemes allegedly targeted vulnerable populations, including immigrant and religious communities such as Haitian New Yorkers, leveraging prayer groups, social media platforms, and WhatsApp for outreach.

Prosecutors allege that returns paid to investors and promoters originated solely from new deposits by other participants, effectively operating as a Ponzi-style structure. The state contends that such internal transfers should not diminish the total sum NovaTech is required to surrender.

The requested disgorgement begins with nearly $1.161 billion in traceable cryptocurrency deposits made by investors, offset by approximately $26 million funneled into the trading platform. This yields a principal figure of $1,134,549,691, plus $232,473,894 in accrued interest.

The filing notes that most deposit usernames lack sufficient identifying information to link them directly to individual investors without a court-ordered accounting process—which the defendants have yet to fulfill. Furthermore, many wallet withdrawal records fail to specify recipient identities, limiting their usefulness in assessing personal losses.

Separately detailed in the October 22 announcement are nearly $6 million in promotional obligations tied to individuals including Frantz Ciceron, James Corbett, Ricardo Roy Sr., and Martin Zizi, all designated for the benefit of defrauded investors.

According to court documents, Roy’s commitment dates back to June 2024, while Zizi’s agreement was finalized on November 25, 2025, and Corbett’s followed on October 20, 2026. Ciceron’s stipulation was signed on May 14 and formally filed on May 19, 2026.

Ciceron’s settlement combines $1.35 million in additional monetary relief with the transfer of his and his entities’ rights to present and future EminiFX receivership distributions. His total obligation is valued at approximately $2 million.

The payment plan under Ciceron’s agreement requires an initial $850,000 payment within 30 days of court approval, followed by four annual installments of $125,000 due on December 31 of 2026 through 2029. Notably, neither the public announcement nor Ciceron’s scheduled payments provide clarity on when or how much individual victims might recover.

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