New York attorney general seeks $1.37 billion from NovaTech crypto scheme founders
New York Attorney General Letitia James is seeking approximately $1.37 billion from Cynthia and Eddy Petion, the founders of cryptocurrency platform NovaTech. Prosecutors allege that the couple operated a Ponzi scheme that raised more than $1 billion from investors under the guise of digital asset trading.
On October 22, 2026, the attorney general's office also announced settlements with four promoters of the scheme. They agreed to pay nearly $6 million, which will be used to compensate victims.
The investigation covers the operations of NovaTech and an earlier project, AWS Mining. Hundreds of thousands of investors worldwide were affected, including more than 11,000 New York residents.
How NovaTech raised more than $1 billion
The Petions launched NovaTech in August 2019 following the collapse of AWS Mining. The earlier project had promised investors monthly returns of 15–20% from cryptocurrency mining but ceased operations in 2019.
NovaTech offered investment packages promising weekly returns of 2–4% from cryptocurrency and foreign exchange trading. Customers were also told that the company held the necessary U.S. licenses and allowed withdrawals at any time.
According to court documents, investors transferred cryptocurrency worth $1.16 billion to a wallet controlled by the platform between August 2019 and May 2023.
Of that amount, only $26 million was transferred to the B2Broker trading platform. Those transactions generated losses of $18.2 million rather than the promised profits.
At least $134.5 million was transferred to wallets controlled by the project's founders. Investigators allege that investor payouts and referral commissions were primarily funded by deposits from new participants.
In May 2023, NovaTech suspended withdrawals, leaving tens of thousands of users unable to access their investments.
Founders flee as promoters agree to pay compensation
In August 2025, a court entered a default judgment against the Petions after they failed to respond to the attorney general's lawsuit. According to authorities, the couple had left the country.
Prosecutors are now seeking the return of $1.135 billion, reflecting funds that were not used for actual trading, along with approximately $232.5 million in interest.
Four promoters agreed to pay between $275,861 and $2.9 million each. They were also permanently banned from working in the securities, commodities and cryptocurrency industries.
Meanwhile, Greek authorities recently uncovered an alleged $8 million cryptocurrency Ponzi scheme linked to two military personnel. According to police, the scheme attracted approximately 10,000 investors, and 17 people were arrested during the investigation.
Nine individuals are suspected of organizing the fraud. Investigators are working to establish how the funds were raised and determine the roles of those involved.
Earlier, we reported that Italian police uncovered an underground banking network linked to mafia groups and cryptocurrency transfers. According to investigators, the criminal network moved approximately €68 million abroad.
Latest Scam Alert News
-
Afghanistan
-
Albania
-
Algeria
-
Angola
-
Argentina
-
Armenia
-
Australia
-
Austria
-
Azerbaijan
-
Bahamas
-
Bahrain
-
Bangladesh
-
Belarus
-
Belgium
-
Bolivia
-
Botswana
-
Brazil
-
Brunei
-
Bulgaria
-
Cambodia
-
Cameroon
-
Canada
-
Chile
-
China
-
Colombia
-
Congo
-
Costa Rica
-
Cote d'Ivoire
-
Croatia
-
Cuba
-
Cyprus
-
Czechia
-
DR Congo
-
Denmark
-
Dominican Republic
-
Ecuador
-
Egypt
-
El Salvador
-
Estonia
-
Eswatini
-
Ethiopia
-
Finland
-
France
-
Georgia
-
Germany
-
Ghana
-
Greece
-
Haiti
-
Hong Kong
-
Hungary
-
India
-
Indonesia
-
Iran, Islamic republic
-
Iraq
-
Ireland
-
Israel
-
Italy
-
Jamaica
-
Japan
-
Jordan
-
Kazakhstan
-
Kenya
-
Korea
-
Kuwait
-
Kyrgyzstan
-
Laos
-
Latvia
-
Lebanon
-
Lesotho
-
Libya
-
Lithuania
-
Luxembourg
-
Madagascar
-
Malaysia
-
Malta
-
Mauritius
-
Mexico
-
Moldova
-
Mongolia
-
Montenegro
-
Morocco
-
Mozambique
-
Myanmar
-
Namibia
-
Nepal
-
Netherlands
-
New Zealand
-
Nigeria
-
North Macedonia
-
Norway
-
Oman
-
Pakistan
-
Palestine
-
Panama
-
Papua New Guinea
-
Paraguay
-
Peru
-
Philippines
-
Poland
-
Portugal
-
Puerto Rico
-
Qatar
-
Reunion
-
Romania
-
Rwanda
-
Saudi Arabia
-
Serbia
-
Singapore
-
Slovakia
-
Slovenia
-
Somalia
-
South Africa
-
Spain
-
Sri Lanka
-
Sweden
-
Switzerland
-
Syria
-
Taiwan
-
Tajikistan
-
Tanzania
-
Thailand
-
Trinidad and Tobago
-
Tunisia
-
Turkey
-
UAE
-
Uganda
-
Ukraine
-
United Kingdom
-
United States
-
Uruguay
-
Uzbekistan
-
Venezuela
-
Vietnam
-
Yemen
-
Zambia
-
Zimbabwe
- Forex
- Crypto
