- New York Attorney General Letitia James asked a court to order NovaTech founders and related companies to pay $1.37 billion.
- The filing says about $1.16 billion went into NovaTech crypto wallets, while only about $26 million was sent to B2Broker for trading.
- Four promoters separately agreed to nearly $6 million in settlements intended to benefit victims.
The NovaTech lawsuit moved forward again after New York Attorney General Letitia James asked a court to order the platform’s founders, Cynthia and Eddy Petion, along with related companies, to pay $1.37 billion over what the state describes as a Ponzi scheme. The request follows an August 2025 default judgment after the defendants failed to respond to the case. The filing also outlines how much money investors put into the platform, how little was allegedly sent to a trading provider, and what separate settlements were reached with four people who recruited investors into NovaTech.
NovaTech lawsuit seeks $1.37 billion
Letitia James asked the court to order NovaTech’s founders and associated companies to pay a total of $1.37 billion. According to the Thursday court filing, that amount includes the return of about $1.13 billion in investor funds and another $232.5 million in interest.
The NovaTech lawsuit comes after the court found Cynthia and Eddy Petion and the companies liable by default in August 2025. The default judgment was entered after they did not respond to the lawsuit, allowing the case to move into the stage where the attorney general is seeking financial recovery.
Investor funds and NovaTech wallet flows
The filing says investors deposited about $1.16 billion into NovaTech’s crypto wallets between August 2019 and May 2023. The attorney general’s office said only about $26 million of that total was deposited with NovaTech’s trading provider, B2Broker, for trading.
That gap between total deposits and the amount allegedly sent for trading is a central detail in the NovaTech lawsuit. The filing presents those figures as part of the case against the platform and its operators, alongside the broader claim that the business functioned as a Ponzi scheme.
Promoters and earlier AWS Mining claims
Four people who recruited investors into NovaTech have separately agreed to pay nearly $6 million in settlements. The attorney general’s office said those settlements are intended to benefit victims.
The court motion also separately seeks about $6.15 million, including interest, related to AWS Mining. According to the source, AWS Mining collapsed in 2019, while NovaTech collapsed in 2023, leaving tens of thousands of investors unable to withdraw their funds.
How the case describes the victims
The attorney general’s office said more than 11,000 New Yorkers lost tens of millions of dollars through NovaTech and AWS Mining. The complaint alleged that promoters targeted Haitian and other immigrant communities through prayer groups, social media and WhatsApp.
According to the complaint, promoters promised high returns and recruitment bonuses. James sued NovaTech, AWS Mining and other associated companies in June 2024, adding to the legal pressure that later led to the August 2025 default judgment.
Conclusion
The NovaTech lawsuit now centers on the attorney general’s request for $1.37 billion from the platform’s founders and related companies after a default judgment in August 2025. The filing says about $1.16 billion was deposited into NovaTech crypto wallets from August 2019 to May 2023, while only about $26 million went to B2Broker for trading. It also notes nearly $6 million in separate promoter settlements and an additional request tied to AWS Mining. Cointelegraph said it sought comment from the New York Attorney General’s Office about how any recovered funds would be distributed and how a judgment could be enforced, but had not received a response by publication.
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