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New York Seeks $1.37 Billion From NovaTech Founders After Default Judgment

The state asks for disgorgement and prejudgment interest because collection is uncertain after the founders reportedly fled and investor records were not produced.

Overview

  • New York Attorney General Letitia James asked a judge to order about $1.367 billion in disgorgement and prejudgment interest from Cynthia and Eddy Petion, the filing breaks the request into roughly $1.1345 billion in disgorgement and $232.47 million in interest.
  • A court entered a default judgment in August 2025 that barred the Petions from securities, commodities and crypto activities after they failed to respond to the state lawsuit and reportedly left the United States.
  • Investigators say CoinPayments records show roughly $1.16 billion flowed into NovaTech between 2019 and 2023 while only about $26 million reached the trading platform and roughly $18.2 million was lost in trading.
  • The AG announced on October 22 that four top promoters agreed to settlements totaling about $5.98 million and accepted permanent bans from securities, commodities and cryptocurrency industries.
  • Practical recovery faces big hurdles because the founders appear to have left U.S. jurisdiction, the state says the required investor records were not produced, and a court must still rule on the monetary award before any victim distributions can begin.