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New York Seeks $1.37 Billion from NovaTech in Fraud Case

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New York Attorney General Letitia James has filed a motion seeking $1.37 billion in damages from NovaTech, its founders Cynthia and Eddy Petion, and related companies. The Oct. 22 filing follows a 2025 default ruling that found the defendants liable for fraud. The requested sum includes approximately $1.134 billion in principal, plus $232.47 million in interest, stemming from investor cryptocurrency deposits.

The state claims that over 11,000 New Yorkers, many from immigrant and religious communities, lost tens of millions of dollars in NovaTech and the related AWS Mining scheme. The filing argues that payments to investors and promoters should not reduce the amount NovaTech must surrender, as they came from other investors' deposits.

Separately, the filing outlines nearly $6 million in promoter obligations for victims' benefit from Frantz Ciceron, James Corbett, Ricardo Roy Sr., and Martin Zizi. Ciceron's agreement includes four $125,000 installments due each Dec. 31 from 2026 through 2029, totaling $2 million. However, the announcement does not provide a completed victim payout total or individual distribution dates.

The filing highlights challenges in matching deposit usernames to individuals and identifying recipients by name, limiting what records can show about individual losses. The state's request for disgorgement seeks to recover funds obtained through the fraud, but it does not establish that the sum has been awarded, collected, or distributed.

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