New York seeks $1.37 billion from NovaTech founders who targeted prayer groups

24 Oct 2026

24 Oct 2026, 01:39 UTC+02:00

New York wants the founders of collapsed crypto platform NovaTech to pay nearly $1.4 billion, but collecting it will be hard. According to Attorney General Letitia James, Cynthia and Eddy Petion have fled the United States.

The filing

In a Thursday filing in New York County Supreme Court, the attorney general’s office asked a judge to order the Petions, NovaTech and related companies to pay about $1.37 billion in damages, disgorgement and interest. The request follows an August 2025 default judgment, issued after the couple left the country and did not respond to the lawsuit. That judgment already banned them from the securities, commodities and crypto industries.

James also announced settlements of nearly $6 million with four top promoters: Martin Zizi, Frantz Ciceron, Ricardo Roy Sr. and James Corbett. The money goes to victims, and all four are permanently barred from the same industries.

How the scheme worked

The state says NovaTech targeted immigrant communities, especially Haitian New Yorkers, through prayer groups, social media and WhatsApp chats, using ads in Haitian Creole and religious messaging. More than 11,000 New Yorkers were among hundreds of thousands of investors worldwide.

NovaTech claimed to be a registered hedge fund broker licensed to trade crypto and advertised returns of 2% to 4% per week, more than 140% a year. In reality it sent just under $26 million to its trading provider between 2019 and 2023 and lost about $18.2 million of that. Payouts and recruiting bonuses came from new deposits. Payment processor data shows investors put roughly $1.16 billion in crypto into NovaTech’s wallet, and at least $134.5 million went to wallets belonging to the Petions. When it collapsed in 2023, tens of thousands of people could not withdraw.

What it means for traders

• Fixed weekly returns are a red flag: no legitimate trading service guarantees 2% a week. Real trading has losing weeks.
• Community trust is exploited: scams often spread through churches, family chats and diaspora groups. Verify any platform independently, no matter who recommends it.
• Check licences yourself: look up a firm in the regulator’s public register. Our exchange comparison lists the licences of major exchanges, and our testing methodology explains how we verify them.

Sources

• Decrypt: Crypto Scammers Who Used Prayer Groups to Lure Victims Must Pay $1.3 Billion, Says New York

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