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New York Attorney General Seeks $1.37 Billion from NovaTech Ponzi Scheme Operators
New York Attorney General Letitia James is attempting to secure a $1.37 billion judgment against the operators of NovaTech and its predecessor, AWS Mining. These two cryptocurrency investment schemes are accused of defrauding hundreds of thousands of investors globally, with losses exceeding $1 billion.
According to the Attorney General's office, the alleged founders, Cynthia and Eddy Petion, failed to appear in court and are believed to have fled the country. James stated, “NovaTech and AWS Mining scammed thousands of vulnerable New Yorkers by telling them they were making a safe investment when in reality, they were victims of a pyramid scheme.”
The schemes targeted immigrant and religious communities, particularly through prayer groups, WhatsApp chats, and advertisements in Haitian Creole. AWS Mining, which collapsed in 2019, sold crypto mining contracts that promised returns of 15 to 20 percent monthly and 200 percent within 15 months. Following its collapse, the Petions launched NovaTech, which was marketed as a registered hedge fund broker, claiming weekly trading returns of two to four percent—amounting to over 140 percent annually. However, these returns were allegedly fabricated.
Records from B2Broker, which provided NovaTech's trading platform, indicate that out of more than $1 billion deposited by investors from 2019 to 2023, only approximately $26 million was actually traded, with losses of $18.2 million incurred by NovaTech’s traders. The returns paid to earlier investors were sourced from new deposits rather than actual trading profits. When NovaTech collapsed in mid-2023, tens of thousands of investors found themselves unable to withdraw their funds.
In addition to the $1.37 billion judgment, the Attorney General is seeking $134.5 million that the Petions allegedly withdrew to their own wallets from an investor account controlled solely by Cynthia Petion, along with $4.7 million linked to the earlier AWS Mining scheme. A default judgment entered in August 2025 already prohibits the couple and their companies from participating in the securities, commodities, and cryptocurrency industries. Furthermore, four top promoters of the scheme have agreed to pay nearly $6 million in restitution to victims and have accepted similar industry bans.
FAQ
What is the NovaTech Ponzi scheme?
The NovaTech Ponzi scheme is a fraudulent cryptocurrency investment operation accused of defrauding hundreds of thousands of investors globally, with losses exceeding $1 billion. It was marketed as a hedge fund broker promising high returns, but those returns were allegedly fabricated.
Who are the key individuals involved in the NovaTech scheme?
The key individuals involved are Cynthia and Eddy Petion, who are accused of operating the NovaTech and its predecessor, AWS Mining. They have failed to appear in court and are believed to have fled the country.
What actions is the New York Attorney General taking against the operators?
New York Attorney General Letitia James is seeking a $1.37 billion judgment against the operators of NovaTech and AWS Mining, along with additional claims for $134.5 million that the Petions allegedly withdrew from investor accounts.
How did the NovaTech scheme operate?
NovaTech operated by promising investors weekly trading returns of two to four percent, claiming over 140 percent annually. However, records indicate that only a small fraction of the funds deposited were actually traded, with returns paid to earlier investors sourced from new deposits.
What has happened to investors since the collapse of NovaTech?
Since the collapse of NovaTech in mid-2023, tens of thousands of investors have been unable to withdraw their funds, leading to significant financial losses for those who invested in the scheme.