New York Seeks Over $1.3 Billion From NovaTech Founders Who Fled the US

New York Attorney General Letitia James wants more than $1.3 billion from Cynthia and Eddy Petion, the founders of NovaTech, after the couple left the United States. A court filing on Thursday put the total at about $1.37 billion, including $232.5 million in interest that accrues before judgment.

How the Money Moved

Records from CoinPayments show that NovaTech took in $1.16 billion in cryptocurrency between August 2019 and May 2023. Investors were promised safe returns, yet at least $134.5 million was withdrawn into wallets tied to the founders, with Cynthia approving those transfers. Prosecutors say early investors were paid with money from newer ones rather than real trading gains.

A Default Judgment and a Lawsuit Against the Firm

When the couple did not respond to the lawsuit, a default judgment followed in August 2025. The case began in June 2024 and also named crypto mining company AWS Mining, with both firms accused of running pyramid schemes that targeted immigrant and religious communities. Four promoters agreed to pay almost $6 million for victims and are now permanently barred from the securities, commodities and crypto industries.