New York AG seeks $1.37 billion from NovaTech founders after Ponzi allegations

New York Attorney General Letitia James has asked a court to order NovaTech founders Cynthia and Eddy Petion, along with their related entities, to pay $1.37 billion following accusations of operating a fraudulent crypto investment scheme. The state said more than 11,000 New Yorkers invested in NovaTech and the associated AWS Mining, both of which promised investors outsized returns despite lacking legitimate trading activity. The attorney general’s filing seeks $1.1345 billion in disgorgement of alleged illicit gains, in addition to $232.47 million in prejudgment interest, for a total requested payment of $1.367 billion.