Letitia James wants $1.3 billion from two people who have vanished. The New York Attorney General filed a motion this week asking a court to formally order Cynthia and Eddy Petion, the founders of the collapsed crypto firm NovaTech, to pay the staggering sum. This follows a default judgment entered against the couple in August. They fled the country long ago. The state is seeking damages and what’s known as disgorgement. That is the legal clawback of ill-gotten gains.
The scale of the alleged fraud is almost cinematic. Between August 2019 and April 2023, NovaTech collected over $1 billion in cryptocurrency from investors. State investigators found less than $26 million was ever actually traded on its platform. When the company imploded in May 2023, tens of thousands of investors found their funds frozen. They could not withdraw a single digital coin.
This latest move against the fugitive founders comes alongside smaller, more concrete victories. James announced nearly $6 million in settlements with four leading promoters of NovaTech and its predecessor, AWS Mining. Martin Zizi, Frantz Ciceron, Ricardo Roy Sr. and James Corbett have agreed to pay victims a combined $5.98 million. They are now permanently banned from the securities, commodities and cryptocurrency industries. “NovaTech and AWS Mining scammed thousands of vulnerable New Yorkers,” James stated. She said they were told it was a safe investment when it was really a pyramid scheme.
The story of this billion-dollar collapse starts with another failure. The Petions launched NovaTech right after their prior venture, AWS Mining, fell apart in 2019. That operation had lured people with promises of monthly returns between 15% and 20%, plus recruitment bonuses. It could not sustain those payouts. NovaTech simply adopted a new pitch. It promised weekly profits of 2% to 4%. It offered bonuses for bringing in new investors. It promised liquidity, saying you could withdraw your money anytime.
These promises were a fiction. According to the motion filed by the Attorney General’s office, the average weekly returns paid to investors were entirely fabricated. The money for those payouts and recruitment bonuses did not come from trading profits. It came directly from the deposits of newer investors. The state’s filing is blunt. It states NovaTech was a Ponzi scheme.
The company’s marketing was brazenly deceptive. It falsely presented itself as a registered hedge fund broker. It claimed to be authorized to trade cryptocurrency in the United States. Its recruitment strategy was deliberately targeted. It focused heavily on immigrant and religious communities, with a particular emphasis on Haitian circles. Advertisements ran in Haitian Creole. Promoters made religious appeals. WhatsApp group messages buzzed with recruitment pitches.
The human cost is vast and local. State officials say the schemes affected more than 11,000 New Yorkers. These individuals collectively lost tens of millions of dollars. They lived in New York City, on Long Island, in Westchester and across the state. They were promised safety and community. They were given a sham.
A recorded statement from Eddy Petion, cited in the legal documents, reveals a chilling cynicism. When discussing how to answer questions about where investor money was going, he advised his team to “keep it vague.” He is recorded saying, “They have no idea where that payment processor is sending it. You can be funding a housing project, buying a new car or filling your swimming pool with bitcoin to swim in.”
The $1.3 billion demand against the Petions is a powerful symbol. It puts a number on the scale of the alleged theft. But collecting it from defendants who are in hiding presents a nearly insurmountable challenge. The $6 million from the settled promoters is different. That money is real. It represents actual recovery for victims. It shows a path forward that relies not on chasing ghosts, but on holding accountable those who remain within reach. The bans on those promoters may be the most significant outcome. They prevent these individuals from ever repeating this playbook.
This case is a stark lesson in the anatomy of a modern fraud. It was not technologically complex. It was a simple Ponzi structure dressed in crypto terminology. Its power came from exploiting trust within tight-knit communities. It weaponized hope and the desire for financial stability. The promoters who settled were not the architects, but they were the essential sales force. Their permanent removal from the industry is a tangible step toward preventing the next NovaTech. The search for the founders continues. For the thousands of investors left waiting, the pursuit of that $1.3 billion is a matter of justice. The collection of the $6 million is a matter of relief.
- Fugitive founders fled the country
- Over $1 billion collected in cryptocurrency
- Less than $26 million traded on the platform
- More than 11,000 New Yorkers affected
- Allegations of Ponzi scheme
- Settlements totaling nearly $6 million reached
| Individuals | Settlement Amount |
|---|---|
| Martin Zizi | $1.49 million |
| Frantz Ciceron | $1.49 million |
| Ricardo Roy Sr. | $1.49 million |
| James Corbett | $1.49 million |
| Total | $5.98 million |
