New York Seeks $1.37B From NovaTech Founders

New York's attorney general is asking a court to order NovaTech and its founders, Cynthia and Eddy Petion, to pay $1,367,023,585. The motion for monetary relief is dated October 22, 2026 and was reported by The Block on October 23.

Details

The total is $1,134,549,691 in disgorgement plus $232,473,894 in prejudgment interest. The filing says investors deposited $1,160,544,294 in crypto, while only $25,994,603 was sent to the B2Broker trading platform between August 2019 and April 2023; the state subtracted that amount from its demand.

According to the filing, Cynthia Petion authorized at least $134,518,775 in withdrawals to wallets of herself and Eddy Petion. The court has already found the defendants liable by default after they did not appear, and the amounts are being set by an inquest on written submissions. The state sued in June 2024, calling NovaTech a pyramid scheme aimed at immigrant communities. The Block reports that the couple left the US.

The attorney general also seeks $4,694,712 from Cynthia Petion over the AWS Mining scheme ($3 million plus $1.69 million in interest).

What it means for the market

No judgment has been entered yet; the figure is the state's request and the court may award a different amount. The case shows that large crypto frauds from 2019⁠–⁠2023 reach monetary penalties years later, and with the defendants abroad, actual recovery for victims remains uncertain. The market impact is limited; for the live bitcoin price see the daily summary.