New York Attorney General Letitia James has asked a state court to order Novatech founders Cynthia and Eddy Petion to pay $1.367 billion, including about $1.135 billion in disgorgement and $232.5 million in interest. The request follows an August 2025 default judgment after the founders failed to appear; it is not a payment order.
Court documents say investors sent $1.1605 billion in cryptocurrency to Novatech’s Coinpayments wallet from August 2019 through May 2023, but only $25.99 million was deposited with B2Broker for trading. Novatech’s traders lost about $18.19 million of that amount. Prosecutors allege that investor deposits funded payouts and recruitment rewards, and that Cynthia Petion authorized at least $134.5 million in withdrawals to wallets belonging to the founders.
