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Home Editor's Pick

NovaTech Founders Face $1.37 Billion Claim Over $1.16…

informedamericantoday by informedamericantoday
October 23, 2026
in Editor's Pick
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NovaTech Founders Face $1.37 Billion Claim Over $1.16…

New York is seeking nearly $1.37 billion from NovaTech founders Cynthia and Eddy Petion after newly filed transaction analysis showed that investors sent more than $1.16 billion in cryptocurrency to the company while only a small fraction reached the trading platform NovaTech said it used to generate returns.

The New York Attorney General’s Office asked a state court to order the Petions and related NovaTech entities to pay $1.1345 billion in disgorgement plus $232.5 million in prejudgment interest, bringing the requested award for the NovaTech operation to $1.367 billion.

The monetary request follows an August 2025 default judgment after the Petions and other defendants failed to appear or answer the lawsuit. The court found sufficient proof of the state’s claims and ordered that damages and disgorgement be determined through a subsequent written inquest. The latest filing asks the court to set those amounts; the $1.37 billion has not yet been awarded.

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What Do the NovaTech Wallet Records Show?

The most consequential new evidence comes from transaction records supplied by payment processor CoinPayments. According to the Attorney General’s analysis, investors deposited $1,160,544,294 worth of cryptocurrency into NovaTech’s CoinPayments wallet between August 15, 2019 and May 23, 2023.

That provides a more granular basis for the scale of the operation than when New York first sued NovaTech and AWS Mining in June 2024.

The filing says Cynthia Petion was the only authorized user of the NovaTech CoinPayments account and controlled transfers from the wallet. The state’s analysis found that at least $134.5 million in withdrawals went to wallets belonging to Cynthia and Eddy Petion.

Overall withdrawals from the CoinPayments wallet totaled approximately $1.149 billion, although the records generally did not contain enough information to identify individual recipients or match each withdrawal to a particular investor deposit.

Investor Takeaway

The new wallet analysis gives the state a transaction-level basis for its damages request, but the court still has to determine the final monetary award.

How Much of the $1.16 Billion Was Actually Traded?

The gap between investor deposits and trading activity is central to New York’s calculation.

NovaTech licensed white-label trading software from Prime Brokerage Services, operating as B2Broker. Records obtained from B2Broker show that NovaTech deposited $25,994,603 onto the platform between August 2019 and April 2023 — approximately 2.2% of the $1.16 billion identified as investor deposits through CoinPayments.

NovaTech’s traders then lost $18,189,417 of the amount transferred to B2Broker, according to the filing.

The Attorney General argues that NovaTech did not generate the trading profits needed to fund the advertised returns of roughly 2% to 4% per week. Instead, purported trading returns and recruitment bonuses were paid using money deposited by other investors.

For purposes of calculating disgorgement, however, the state deducted the entire $25.99 million sent to B2Broker from the $1.1605 billion deposit total. That produced the requested principal amount of $1,134,549,691.

How Does the $1.37 Billion Request Fit the Earlier Cases?

The state action is separate from the federal securities case. The SEC charged NovaTech, the Petions and several promoters in 2024 over what it described as a more than $650 million scheme involving more than 200,000 investors.

The different headline amounts should not be treated as conflicting estimates of the same measure. New York’s latest $1.16 billion figure is based specifically on the dollarized value of cryptocurrency identified in CoinPayments’ “Incoming Transactions” records over nearly four years. The $1.37 billion figure is larger because it combines the state’s requested disgorgement with prejudgment interest.

The Attorney General is also seeking separate amounts connected to AWS Mining, the operation that preceded NovaTech. Those include approximately $1.46 million against AWS Mining and $4.69 million against Cynthia Petion, including interest.

Investor Takeaway

The $1.37 billion headline is a civil monetary request, not a newly discovered loss figure: $1.1345 billion represents requested NovaTech disgorgement and $232.5 million is interest.

What Happens to NovaTech’s Promoters?

New York separately resolved claims against four promoters. Martin Zizi will pay $2.9 million, Frantz Ciceron $2.05 million, James Corbett $750,000 and Ricardo Roy Sr. $275,861, for a combined $5.98 million intended to benefit victims.

All four are permanently barred from participating in the securities, commodities and cryptocurrency industries. The settlements extend New York’s use of industry bans in crypto enforcement cases, including its recent settlement with former Celsius CEO Alex Mashinsky.

The Petions are already subject to permanent restrictions under the 2025 default judgment. The unresolved issue is now financial: whether the court accepts New York’s transaction-based calculation and orders the defendants to pay the requested $1.37 billion, an amount built largely from cryptocurrency flows that the state says never reached NovaTech’s purported trading operation.

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