{"id":575717,"date":"2026-10-24T06:50:59","date_gmt":"2026-10-24T05:50:59","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=575717"},"modified":"2026-10-24T04:10:48","modified_gmt":"2026-10-24T03:10:48","slug":"new-york-demands-1-3b-from-novatech-and-11000-victims-face-delay","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/new-york-demands-1-3b-from-novatech-and-11000-victims-face-delay\/","title":{"rendered":"New York demands $1.3B from NovaTech and 11,000 victims face delay"},"content":{"rendered":"

New York Attorney General Letitia James asked a state court on Oct. 22 to order cryptocurrency investment company NovaTech, its founders Cynthia and Eddy Petion, and related companies to pay more than $1.3 billion, following a 2025 default ruling on liability.<\/p>\n

The filing<\/a> seeks $1,367,023,585, including interest, in damages from the NovaTech fraud. It advances the state\u2019s claim for victims, but does not establish that this sum has been awarded, collected or distributed.<\/p>\n

According to the filing, an Aug. 4, 2025 default order found the defendants liable and ordered investor damages and disgorgement, or the surrender of money obtained through the fraud. The court left the amounts to be determined through written submissions.<\/p>\n

The New York Attorney General\u2019s office says more than 11,000 New Yorkers<\/a> lost tens of millions of dollars in NovaTech and the related AWS Mining scheme. It says the schemes targeted immigrant and religious communities, particularly Haitian New Yorkers, through prayer groups, social media and WhatsApp.<\/p>\n

The state says payments to investors and promoters came from other investors\u2019 deposits, and argues those withdrawals should not reduce the amount NovaTech must surrender.<\/p>\n

Its requested disgorgement starts with approximately $1.161 billion in identified investor cryptocurrency deposits, less about $26 million sent to the trading platform<\/a>. The filing puts the resulting principal at $1,134,549,691, before $232,473,894 in interest.<\/p>\n

\"New<\/a>
New York seeks $1.37 billion from NovaTech after a default liability ruling, while separate promoter payment terms do not establish victim payout dates.<\/figcaption><\/figure>\n

The filing says most deposit usernames cannot reliably be matched to people without the court-ordered accounting that defendants have failed to provide. Most wallet withdrawals don't identify recipients by name, limiting what those records can show about individual losses.<\/p>\n

Settlement obligations stretch over years<\/h2>\n

Separately, the Oct. 22 announcement lists nearly $6 million in promoter obligations for victims\u2019 benefit from Frantz Ciceron, James Corbett, Ricardo Roy Sr. and Martin Zizi.<\/p>\n\n

\n \n
\n Related Reading<\/span>\n

Celsius founder faces lifetime ban, but can trade his own crypto<\/h3>\n <\/div>\n \n <\/i>\n <\/span>\n <\/a>\n<\/div>\n\n

According to the filing, Roy\u2019s assurance dates to June 2024. Zizi\u2019s stipulation<\/a> was dated Nov. 25, 2025, and Corbett\u2019s<\/a> Oct. 20, 2026. Ciceron\u2019s<\/a> was dated May 14 and filed May 19, 2026.<\/p>\n

Ciceron\u2019s agreement combines $1.35 million in additional monetary relief with the transfer to New York of his and his entities\u2019 rights to present and future EminiFX receivership distributions. The announcement puts his total obligation at $2 million.<\/p>\n

The cash terms call for $850,000 within 30 days of court execution, followed by four $125,000 installments due each Dec. 31 from 2026 through 2029. Ciceron and Kings Multi Services Agency LLC neither admitted nor denied the complaint\u2019s allegations.<\/p>\n

Neither the announcement nor Ciceron\u2019s schedule provides a completed victim payout total or an individual distribution date.<\/p>\n","protected":false},"excerpt":{"rendered":"

The October 22 motion follows a 2025 liability ruling, while separate promoter obligations include Ciceron\u2019s installments through 2029.<\/p>\n","protected":false},"author":1264,"featured_media":575788,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[76799,77968,60793,9836],"tags":[78295,77433],"post_folder":[],"acf":[],"yoast_head":"\nNew York demands $1.3B from NovaTech and 11,000 victims face delay<\/title>\n<meta name=\"description\" content=\"New York seeks $1.367 billion from NovaTech\u2019s founders as separate promoter settlements show the gap between legal obligations and victim payouts.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/new-york-demands-1-3b-from-novatech-and-11000-victims-face-delay\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" 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