Bitcoin Magazine
NY Seeks $1.37 Billion Judgment Against Operators of NovaTech Crypto Ponzi Scheme
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, two successive cryptocurrency investment schemes that allegedly defrauded hundreds of thousands of investors worldwide out of more than $1 billion.
Alleged founders Cynthia and Eddy Petion never appeared in court and, according to the AG’s office, fled the country.
“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,” James said in a statement. “These scammers targeted immigrant and religious communities with the promise of a better life but instead robbed them of their life savings.”
The schemes, AWS Mining and later NovaTech, 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. 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. 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.
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