NovaTech $1.37 billion Judgment: What NY Is Seeking

New York Attorney General Letitia James is pressing a court to formally order NovaTech founders Cynthia and Eddy Petion, along with affiliated companies, to hand over $1.37 billion in the Novatech $1.37 billion judgment. The figure splits into roughly $1.13 billion of investor money and $232.5 million in interest.

The request is the collection phase of a case that already decided liability. In August 2025 the court entered a default judgment against the Petions and the companies after they did not respond to the lawsuit, which James filed in June 2024. What remains is whether the court grants the specific dollar amounts now being sought.

What happened in the NovaTech $1.37 billion judgment request

The motion is not a new allegation of wrongdoing; it is the attorney general's proposed remedy. Because the defendants defaulted, the court has already found them liable, and this filing asks the judge to set the financial terms of the judgment.

The numbers describe a platform that took in far more than it traded with. According to the attorney general's office, investors put about $1.16 billion into NovaTech crypto wallets between August 2019 and May 2023, while only about $26 million was passed to the trading provider B2Broker. That gap is central to the case's characterization of the operation.

• Total sought from founders and companies: $1.37 billion
• Investor funds component: about $1.13 billion
• Interest component: $232.5 million
• Separate request tied to AWS Mining, with interest: about $6.15 million
• Promoter settlements: nearly $6 million

Four recruiters who brought in investors have separately agreed to pay close to $6 million in settlements meant to benefit victims, a different track from the main judgment against the founders.

Why the case matters beyond one platform

NovaTech was a crypto and forex trading platform that collapsed in 2023, leaving tens of thousands of investors unable to withdraw. Its story is tied to an earlier scheme, AWS Mining, which folded in 2019. More than 11,000 New Yorkers lost tens of millions of dollars across the two, per the attorney general's office.

How the money was raised is as significant as the shortfall. Promoters allegedly approached Haitian and other immigrant communities through prayer groups, social media and WhatsApp, offering high returns plus bonuses for recruiting others. That combination — tight community trust, referral incentives and a trading product most investors could not verify — is a durable pattern in crypto fraud cases, and it is why regulator attention tends to focus on recruitment structures rather than only on the trading claims.

The attorney general's office says only a small fraction of deposits was ever placed with the trading provider.

For everyday holders, the practical lesson is about verification. A platform that publishes returns without independent proof of trading activity, and that pays existing users for bringing in new money, carries structural risk regardless of how polished its branding looks.

What to watch next

The immediate question is whether the court accepts the $1.37 billion figure as proposed or adjusts the amounts. A default judgment establishes liability, but collecting on a large award is a separate challenge, particularly if the founders are not within reach of the court.

The attorney general's office did not respond to questions about how recovered funds would be distributed to victims or how enforcement would proceed, so the recovery path is unresolved. Note also that public reporting has varied slightly on the headline number — some coverage framed it as over $1.3 billion — while the specific filing figure is $1.37 billion.

Scenarios worth tracking:

1. Judgment granted as requested. The award becomes a formal debt, and attention shifts to asset tracing and enforcement.
2. Amounts revised. Courts sometimes trim interest or disgorgement components, changing the headline number but not the liability finding.
3. Slow or partial recovery. Even a large judgment may translate into limited payouts if assets are scarce or held offshore, a common outcome in crypto fraud cases.

For the market, this is a legal and reputational event rather than a price catalyst. Its relevance to traders is indirect: enforcement actions of this size shape how aggressively platforms market yield products and referral programs, especially to immigrant communities.

FAQ

What is the NovaTech $1.37 billion judgment about?

It is a request by New York Attorney General Letitia James asking a court to order NovaTech founders Cynthia and Eddy Petion and related companies to pay $1.37 billion over what her office describes as a Ponzi scheme. The sum is about $1.13 billion in investor funds plus $232.5 million in interest.

Why did the court find the NovaTech founders liable by default?

The Petions and the associated companies did not respond to the lawsuit, which was filed in June 2024. Because of that failure to answer, the court entered a default judgment in August 2025, establishing liability before the current request to set the dollar amount.

How much did NovaTech investors actually deposit?

Per the attorney general's office, about $1.16 billion went into NovaTech crypto wallets between August 2019 and May 2023. Only around $26 million was deposited with the trading provider B2Broker, and more than 11,000 New Yorkers lost tens of millions of dollars across NovaTech and the earlier AWS Mining scheme.

Related reading

• a16z Crypto Fund Rebrand Signals Wider AI Push
• Coinbase Ireland Fine Hits 3.25 Million Euros Over Safeguarding
• Visa Fireblocks Acquisition Rumors: What Traders Need to Know

More in News.

Sources

• Cointelegraph
• The Block

Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency prices are highly volatile — always do your own research before investing.