New York Attorney General Letitia James is pursuing a substantial $1.37 billion judgment against the individuals accused of operating NovaTech and its predecessor, AWS Mining. These entities are alleged to be successive cryptocurrency investment schemes that defrauded hundreds of thousands of investors globally out of over $1 billion. The alleged founders, Cynthia and Eddy Petion, have not appeared in court and are reportedly no longer in the country, according to the Attorney General’s office.
A Web of Deception: From AWS Mining to NovaTech
The schemes, AWS Mining and later NovaTech, operated by leveraging a network of promoters who actively recruited within Haitian and other immigrant communities. These recruitment efforts often occurred through informal channels such as prayer groups, WhatsApp chat groups, and advertisements published in Haitian Creole, indicating a targeted approach to individuals seeking financial security and a better future.
AWS Mining, the initial venture, lured investors with promises of lucrative returns through cryptocurrency mining contracts. The scheme advertised monthly returns ranging from 15 to 20 percent, with a projected 200 percent return within 15 months. However, this operation reportedly collapsed in 2019. Following this collapse, the Petions allegedly launched NovaTech, rebranding the operation as a registered hedge fund broker. NovaTech continued to entice investors with similarly ambitious promises, offering weekly trading returns of two to four percent, which translated to an annual return exceeding 140 percent.
Fabricated Returns and Investor Losses
Prosecutors contend that the promised returns were entirely fabricated. Financial records obtained from B2Broker, the provider of NovaTech’s white-label trading platform, reveal a stark reality. Between 2019 and 2023, investors deposited over $1 billion into the platform. However, a mere $26 million of these funds were ever actually traded. Even more damning, NovaTech’s traders incurred losses totaling $18.2 million on this small fraction of invested capital. The illusion of profitability was maintained by using funds from new investors to pay off earlier ones, a hallmark of a Ponzi or pyramid scheme, rather than generating actual trading profits.
The collapse of NovaTech in mid-2023 left tens of thousands of investors unable to access their deposited funds, effectively trapping their savings within the fraudulent operation.
The Attorney General’s Pursuit of Justice
Attorney General James has articulated a strong stance against the alleged perpetrators. "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 stated. She further elaborated on the predatory nature of the schemes, noting, "These scammers targeted immigrant and religious communities with the promise of a better life but instead robbed them of their life savings."
In addition to seeking the $1.37 billion judgment, the Attorney General’s office is pursuing the recovery of $134.5 million that Cynthia Petion allegedly transferred to her personal cryptocurrency wallets from an investor account she solely controlled. Furthermore, an additional $4.7 million is being sought in connection with the earlier AWS Mining scheme.
A significant legal step has already been taken: a default judgment was entered in August 2025, which permanently bars Cynthia and Eddy Petion, along with their associated companies, from participating in the securities, commodities, and cryptocurrency industries. This ruling underscores the severity of the alleged misconduct and aims to prevent further harm by barring the individuals from operating in financial markets.
Promoters Also Face Consequences
The legal action extends beyond the alleged founders. Four of the scheme’s top promoters have already agreed to pay nearly $6 million in disgorgement to the victims. Disgorgement is a legal remedy that requires a party to give up any profits gained from their illegal activity. These promoters have also accepted similar industry bans, reflecting a broader effort to dismantle the network responsible for perpetrating these fraudulent schemes.
Background and Context: The Allure of Crypto Investments
The rise of cryptocurrencies and blockchain technology in recent years has created fertile ground for both legitimate innovation and fraudulent schemes. The promise of rapid wealth accumulation and decentralized finance has attracted a diverse range of investors, from seasoned traders to individuals with limited financial literacy.
Schemes like AWS Mining and NovaTech often exploit this allure by presenting complex financial products in an overly simplified and optimistic manner. They capitalize on the public’s limited understanding of cryptocurrency trading and mining, coupled with a desire for financial independence. The targeting of immigrant and religious communities, as highlighted by Attorney General James, suggests a calculated strategy to exploit trust and a strong community network, making it easier to spread misinformation and recruit new victims.
Timeline of Alleged Fraudulent Activity
- Pre-2019: Allegations suggest the initial operations of AWS Mining were underway, promising high monthly returns through crypto mining contracts.
- 2019: AWS Mining reportedly collapses.
- Post-2019: Cynthia and Eddy Petion allegedly launch NovaTech, rebranding the operation as a registered hedge fund broker with promises of weekly trading returns.
- 2019 – Mid-2023: Investors reportedly deposit over $1 billion into NovaTech accounts. A significant portion of these funds are allegedly never traded, and returns are paid from new deposits.
- Mid-2023: NovaTech collapses, leaving tens of thousands of investors unable to withdraw their funds.
- August 2025: A default judgment is entered, barring the Petions and their companies from the securities, commodities, and cryptocurrency industries.
- Present: New York Attorney General Letitia James is actively pursuing a $1.37 billion judgment against the operators and seeking the recovery of millions in allegedly misappropriated funds. Four promoters have agreed to pay nearly $6 million and accept industry bans.
Broader Implications and Future Outlook
The pursuit of this substantial judgment by Attorney General James sends a clear message to those who engage in fraudulent cryptocurrency schemes. It underscores the commitment of regulatory bodies to protect investors, particularly vulnerable populations, from exploitation. The involvement of multiple jurisdictions and the global reach of these schemes highlight the challenges of regulating the increasingly borderless digital asset market.
The case also brings to the forefront the need for greater financial literacy and education regarding cryptocurrency investments. Investors are encouraged to conduct thorough due diligence, understand the risks involved, and be wary of promises of exceptionally high, guaranteed returns. Regulatory bodies worldwide are continuously working to adapt to the evolving landscape of digital assets, seeking to strike a balance between fostering innovation and preventing illicit activities.
The outcome of this case could have significant implications for future enforcement actions against similar fraudulent operations. The substantial financial penalties sought, coupled with permanent industry bans, serve as a deterrent and a means of seeking restitution for victims. The ongoing legal proceedings will be closely watched by the cryptocurrency industry, regulators, and investors alike, as they navigate the complex and often volatile world of digital finance. The Attorney General’s office’s relentless pursuit of justice in this instance reflects a dedication to holding perpetrators accountable and safeguarding the financial well-being of consumers.
