New York Seeks $1.36 Billion From NovaTech Founders After Default Judgment

New York's attorney general is seeking about $1.36 billion from NovaTech founders Cynthia Petion and Eddy Petion after a court entered a default judgment in the state's lawsuit over alleged crypto fraud. The request includes $1.13 billion in restitution and $232.5 million in prejudgment interest. Investors deposited $1.16 billion in cryptocurrency into NovaTech wallets from August 2019 through May 2023, and at least $134.5 million went to the founders' wallets. The attorney general's office alleges NovaTech used money from new investors to pay purported trading profits and referral bonuses.