New York Asks Court for a $1.37 Billion Judgment Against NovaTech’s Founders

Introduction

New York Attorney General Letitia James has asked a state court to set a $1.37 billion judgment against NovaTech founders Cynthia and Eddy Petion. The judgment follows a default ruling in August 2025 that labeled the couple’s operations a Ponzi scheme and ordered them to produce investor records—records they have yet to provide. While the state has secured a modest $6 million from four promoters, it has not outlined how it will collect the bulk of the award from the Petions.

How the State Arrived at $1.37 Billion

The filing breaks the requested amount into two components:

• $1.13 billion in disgorgement – calculated from roughly $1.16 billion that flowed into NovaTech’s wallet between August 2019 and May 2023, less the small portion that actually reached a licensed trading platform and the losses incurred there.
• $232.5 million in prejudgment interest – reflecting the time value of the investors’ funds.

According to payment‑processor data, the vast majority of the inflows were used to pay earlier investors, a classic hallmark of a Ponzi operation. Cynthia Petion, the sole authorized user of the primary wallet, allegedly approved more than $134 million in withdrawals to personal wallets controlled by the couple.

Victim Compensation and the Limited Settlements

Four promoters—Martin Zizi, Frantz Ciceron, James Corbett, and Ricardo Roy Sr.—have agreed to pay a combined $5.98 million to victims. Their settlements, reached between June 2024 and October 2026, also bar them permanently from the securities, commodities, and crypto industries. While the money will be distributed to the roughly 11,000 New Yorkers who invested in NovaTech and its affiliated “AWS Mining” scheme, the sum represents less than 0.5 % of the total judgment the state is pursuing.

Unclear Path to Recovery

The attorney general’s request does not specify:

• An asset freeze or seizure order against the Petions.
• The appointment of a court‑appointed receiver to locate and liquidate hidden assets.
• A timeline or mechanism for enforcing the judgment.

The lack of a concrete recovery plan raises questions about the practical impact of the massive judgment. In a parallel federal action, the SEC secured a clerk’s default against the same defendants in March 2026, but similar enforcement details remain pending.

Closing Thoughts

New York’s aggressive stance signals a broader regulatory push against crypto fraud, especially schemes targeting vulnerable immigrant and religious communities. However, the ultimate effectiveness of the $1.37 billion judgment hinges on the state’s ability to locate and seize the Petions’ assets—a step that has yet to be outlined. Until that happens, the judgment may serve more as a symbolic condemnation than a tangible remedy for the thousands of investors who lost their life savings.