New York Attorney General Letitia James announced on October 22, 2026 that her office has asked a court to order Cynthia and Eddy Petion, the founders of the crypto platform NovaTech, to pay about $1.3 billion in damages and repayment of investor money. The couple have left the United States.
At the same time, four people who recruited investors for the scheme agreed to pay nearly $6 million that will go to victims.
Key facts
- From August 2019 to April 2023, investors deposited more than $1 billion worth of crypto with NovaTech. Less than $26 million of it was ever sent for actual trading.
- Instead, “profits” and recruitment bonuses were paid out of money from newer investors, a classic pyramid structure.
- NovaTech collapsed in May 2023. Tens of thousands of investors could not withdraw their crypto.
- More than 11,000 New Yorkers invested, and hundreds of thousands of people were affected worldwide.
- The founders were found liable by default judgment in August 2025, after they did not answer the lawsuit, and were banned from the industry.
The numbers behind the $1.3 billion
According to the court filing, the state is asking for about $1.13 billion in disgorgement (giving back money taken from investors) plus roughly $232.5 million in interest, close to $1.37 billion in total. Records cited in the filing show at least $134.5 million moved to wallets belonging to the founders.
A separate request covers AWS Mining, an earlier crypto mining scheme run by many of the same people, which promised returns of 15–20% a month and collapsed in 2019.
Who was targeted
The promoters focused on Haitian and other immigrant, minority and religious communities. They recruited through prayer groups, WhatsApp chats and social media, often with ads in Haitian Creole, and presented the investment as safe.
The promoter settlements
Four promoters, Martin Zizi, Frantz Ciceron, Ricardo Roy Sr. and James Corbett, agreed to pay a combined total of about $6 million. All four are permanently banned from the securities, commodities and crypto industries.
Why it matters
Winning a $1.3 billion order is not the same as collecting it. With the founders outside the US, victims may see only a small part of their money back, at least for now. The case is a reminder of the warning signs of crypto pyramid schemes: guaranteed high returns, bonuses for bringing in friends, and recruitment through trusted community or religious groups. If an offer looks like this, walk away.
This article is for information only and is not financial advice.
