Crypto Scammers Who Used Prayer Groups to Lure Victims Must Pay $1.3 Billion, Says New York

Crypto Scam Targeting Prayer Groups Faces $1.3 B Judgment in New York

The New York Attorney General’s office has moved to hold the founders of the collapsed crypto trading platform NovaTech accountable for a massive fraud that leveraged Haitian‑focused prayer groups and WhatsApp networks. In a filing with the New York County Supreme Court, Attorney General Letitia James is asking a judge to order Cynthia and Eddy Petion—who fled the United States after an August 2025 default judgment—to pay roughly $1.37 billion in damages, disgorgement, and interest. The case also secured settlements with four of the scheme’s top promoters for a combined $5.9 million, and permanently barred them from the securities, commodities, and crypto industries.

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How the Scheme Operated

NovaTech presented itself as a licensed hedge‑fund broker capable of generating high crypto returns. Marketing materials—many in Haitian Creole—promised weekly yields of 2 % to 4 %, equating to more than 140 % annually. The campaign was tightly woven into religious contexts: ads appeared in prayer group newsletters, and promoters used WhatsApp chats to spread messages that blended faith‑based language with promises of financial freedom.

Investors were enticed to deposit crypto into a NovaTech wallet managed exclusively by Cynthia Petion. Payment‑processor data shows $1.16 billion in crypto was funneled into that wallet between August 2019 and May 2023. Of that amount, roughly $134.5 million was transferred to wallets owned by the Petions. The platform’s trading activity was minimal—under $26 million was sent to its external trading provider, with about $18.2 million lost in the process. The bulk of weekly payouts and recruiting bonuses were funded by new investors’ deposits, a classic hallmark of a Ponzi‑style operation.

When NovaTech collapsed in 2023, tens of thousands of investors—over 11,000 from New York alone—found themselves unable to withdraw their funds. The fallout extended beyond New York, affecting hundreds of thousands of investors worldwide.

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Legal Actions and Financial Recovery

The Attorney General’s lawsuit, filed in June 2024, alleged that NovaTech and its affiliated entity AWS Mining defrauded investors of more than $1 billion. The SEC later joined the effort, charging the Petions and related parties with a $650 million fraud in a separate action.

The August 2025 default judgment—issued after the Petions failed to appear in court—ordered the couple to disgorge $1.13 billion and pay $232 million in interest. The current filing seeks to enforce that judgment and add any additional damages the court may deem appropriate.

In parallel, four promoters—Martin Zizi, Frantz Ciceron, Ricardo Roy Sr., and James Corbett—reached settlements totaling $5.9 million. As part of the agreements, they will contribute the funds to a victim‑compensation pool and are permanently prohibited from participating in any securities, commodities, or crypto‑related activities.

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Broader Implications for Crypto Regulation

The NovaTech case underscores several recurring vulnerabilities in the crypto ecosystem:

1. Community‑Based Targeting – Exploiting tight‑knit religious or immigrant groups can amplify trust and reduce skepticism.
2. Cross‑Border Enforcement Challenges – The founders’ flight abroad illustrates the difficulty of collecting large judgments when defendants are outside U.S. jurisdiction.
3. Regulatory Coordination – The joint effort of state attorneys general and the SEC demonstrates a growing willingness to pursue coordinated actions against crypto fraud.

For investors, the case serves as a reminder to scrutinize any offering that promises unusually high, consistent returns, especially when the marketing leverages personal or cultural connections.

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What Comes Next?

While the court’s order may eventually compel the Petions to pay the $1.37 billion judgment, actual recovery will depend on the ability to locate and seize assets abroad. Meanwhile, the settlement with the promoters provides a modest but tangible source of restitution for victims.

The New York Attorney General’s office has indicated that it will continue to monitor the situation and pursue additional enforcement actions where necessary. Investors who believe they were harmed by NovaTech are encouraged to submit claims through the victim‑compensation process established by the settlement.

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Bottom line: New York’s aggressive legal push against NovaTech highlights the risks of crypto schemes that blend faith‑based outreach with unrealistic profit promises. While the $1.37 billion judgment marks a significant step toward accountability, the path to full restitution remains uncertain, reinforcing the need for vigilant due diligence in the crypto space.