New York Attorney General seeks to recover $1.367 billion from the founder of Novatech
2026-10-23 18:21:46
According to CoinMeta, New York Attorney General Letitia James announced on October 22 that they had filed a court order requiring the founders of the crypto investment platform Novatech, Cynthia Petion and Eddy Petion, to pay approximately $1.367 billion, which includes about $1.135 billion in illegal gains recovery and $232 million in pre-judgment interest. According to court documents, from August 2019 to May 2023, Novatech received a total of approximately $1.161 billion in crypto asset deposits, but only transferred about $25.99 million to the trading platform, of which about $18.19 million resulted in trading losses. At least $134.5 million in crypto assets were transferred to the wallets of the two founders. The prosecution alleges that Novatech attracted investors by promising a 2%–4% weekly return on investment, but actually used the funds from new investors to pay for so-called trading profits and recruitment bonuses. The two founders have left the United States, and the court issued a default judgment in August 2025. In addition, four promoters involved in the case have agreed to pay a total of nearly $6 million and have been permanently banned from participating in the securities, commodities, and cryptocurrency industries.
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