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New York Attorney General Letitia James is seeking a $1.37 billion judgment against the operators of NovaTech and its predecessor AWS Mining, two successive cryptocurrency investment schemes that allegedly defrauded hundreds of thousands of investors worldwide out of more than $1 billion, according to a news report dated August 21, 2026. The alleged founders, Cynthia and Eddy Petion, never appeared in court and, according to the AG's office, fled the country. The schemes recruited heavily in Haitian and other immigrant communities through prayer groups, WhatsApp chats, and ads in Haitian Creole. A default judgment entered in August 2025 already bars the couple and their companies from the securities, commodities, and cryptocurrency industries.

Background

The source report describes a long-running alleged pyramid scheme that operated in two phases. AWS Mining sold crypto mining contracts promising 15 to 20 percent monthly returns and 200 percent within 15 months, and it collapsed in 2019. The Petions then launched NovaTech, marketed as a registered hedge fund broker, promising weekly trading returns of two to four percent, or more than 140 percent a year. According to prosecutors, those returns were fabricated. Records from B2Broker, which supplied NovaTech's white-label trading platform, show that of the more than $1 billion investors deposited between 2019 and 2023, only about $26 million was ever actually traded, and NovaTech's traders lost $18.2 million of that. Returns to earlier investors came from newer deposits, not trading. When NovaTech collapsed in mid-2023, tens of thousands of investors could not withdraw their funds. The schemes relied on promoters who recruited heavily in Haitian and other immigrant communities. The AG is also seeking $134.5 million the Petions allegedly withdrew to their own wallets from the investor account Cynthia Petion solely controlled, plus $4.7 million tied to the earlier AWS Mining scheme. Separately, four of the scheme's top promoters have agreed to pay nearly $6 million in disgorgement to victims and accepted the same industry bans.

What happened

According to the news report, New York Attorney General Letitia James is trying to secure a $1.37 billion judgment against the operators of NovaTech and its predecessor AWS Mining. The report states that the alleged founders, Cynthia and Eddy Petion, never appeared in court and, according to the AG's office, fled the country. James said in a statement: "NovaTech and AWS Mining scammed thousands of vulnerable New Yorkers by telling them they were making a safe investment when in reality, they were victims of a pyramid scheme." She added: "These scammers targeted immigrant and religious communities with the promise of a better life but instead robbed them of their life savings." The report says the schemes relied on promoters who recruited heavily in Haitian and other immigrant communities through prayer groups, WhatsApp chats, and ads in Haitian Creole. AWS Mining sold crypto mining contracts promising 15 to 20 percent monthly returns and 200 percent within 15 months, and it collapsed in 2019. The Petions then launched NovaTech, marketed as a registered hedge fund broker, promising weekly trading returns of two to four percent, more than 140 percent a year. Those returns were fabricated, according to prosecutors. Records from B2Broker, which supplied NovaTech's white-label trading platform, show that of the more than $1 billion investors deposited between 2019 and 2023, only about $26 million was ever actually traded, and NovaTech's traders lost $18.2 million of that. Returns to earlier investors came from newer deposits, not trading. When NovaTech collapsed in mid-2023, tens of thousands of investors could not withdraw their funds. The AG is also seeking $134.5 million the Petions allegedly withdrew to their own wallets from the investor account Cynthia Petion solely controlled, plus $4.7 million tied to the earlier AWS Mining scheme. A default judgment entered in August 2025 already bars the couple and their companies from the securities, commodities, and cryptocurrency industries. Separately, four of the scheme's top promoters have agreed to pay nearly $6 million in disgorgement to victims and accepted the same industry bans.

Market impact

The source report contains no market prices, trading volumes, or fund flow figures beyond the alleged fraud amounts. It states that investors deposited more than $1 billion into NovaTech between 2019 and 2023, that only about $26 million was ever actually traded, and that NovaTech's traders lost $18.2 million of that. The AG is seeking a $1.37 billion judgment, including $134.5 million the Petions allegedly withdrew to their own wallets and $4.7 million tied to AWS Mining. Four top promoters have agreed to pay nearly $6 million in disgorgement. AWS Mining promised 15 to 20 percent monthly returns and 200 percent within 15 months, while NovaTech promised weekly returns of two to four percent, more than 140 percent a year. The report does not provide any data on crypto ETF flows, Treasury yields, or asset prices, so no market impact on those metrics can be assessed from this source.

Why it matters

The source report supports the conclusion that the case is one of the largest alleged crypto frauds described in the article, with more than $1 billion in investor deposits and a $1.37 billion judgment sought. It shows how promoters used community institutions, including prayer groups and WhatsApp chats, and targeted immigrant and religious communities, which the Attorney General said robbed victims of their life savings. The report also documents that a default judgment entered in August 2025 already bars the Petions and their companies from the securities, commodities, and cryptocurrency industries, and that four top promoters agreed to pay nearly $6 million in disgorgement and accepted the same industry bans. According to the report, the alleged founders fled the country and never appeared in court, which may complicate collection of any judgment. The case illustrates the risks of promised high returns that prosecutors say were fabricated, and it may affect trust in crypto investment offerings, particularly among communities that were targeted.