New York AG Seeks $1.37 Billion from NovaTech Founders in Ponzi Scheme Case

AG James is aiming to recover approximately $1.13 billion in investor funds, plus an additional $232.5 million in interest, as outlined in a court filing submitted on Thursday.

In August 2025, a court ruled the Petions and their companies liable by default after they failed to respond to the legal complaint.

Separately, four individuals who helped recruit investors into NovaTech have agreed to settle for nearly $6 million, with the funds designated to compensate victims, according to the Attorney General’s office.

The office reported that over 11,000 New York residents suffered losses of tens of millions of dollars through NovaTech and an earlier crypto mining operation named AWS Mining. The lawsuit notes promoters specifically targeted Haitian and other immigrant communities via prayer groups, social media platforms, and WhatsApp, promising high returns and referral bonuses.

Court documents reveal investors deposited about $1.16 billion into NovaTech cryptocurrency wallets between August 2019 and May 2023. However, only roughly $26 million was actually invested through the platform’s trading provider, B2Broker, according to the AG.

The lawsuit also requests recovery of around $6.15 million plus interest related to the AWS Mining case.

While AWS Mining shut down in 2019, NovaTech collapsed in 2023, leaving tens of thousands of investors unable to withdraw their money. James filed the lawsuit against NovaTech, AWS Mining, and other associated companies in June 2024.

Cointelegraph reached out to the New York Attorney General’s office for comments on how recovered funds might be distributed to victims and the possible enforcement of the court’s judgment but received no response prior to publication.

This legal action highlights the ongoing efforts to hold cryptocurrency Ponzi scheme operators accountable and aims to recover substantial funds to compensate defrauded investors.