New York Wants $1.3B From Crypto Founders Who Fled
New York wants $1.3 billion from NovaTech’s founders, who the state says fled the country, while the promoters’ nearly $6 million in settlements is partly payable through 2030.
Key Takeaways
Founders: $1.37 billion sought, including $232 million interest
Investors deposited $1.16 billion; $26 million reached trading
Four promoter settlements total about $5.98 million
Corbett’s first installment due April 1, 2027
Attorney General Letitia James announced the settlements and the court request on October 22.
The founders never showed up in court
The request targets Cynthia and Eddy Petion, who ran NovaTech, along with their companies. They never responded to the state’s June 2024 lawsuit, and in August 2025 a judge entered a default judgment finding them liable and barring them from promoting or selling securities, commodities or cryptocurrencies in New York. According to the attorney general, the couple fled the country.
The state’s filing asks the court to order $1,134,549,691 in disgorgement, meaning the surrender of money obtained through the fraud, plus $232,473,894 in prejudgment interest, for a NovaTech total of $1,367,023,585. It seeks about $6.2 million more over the earlier AWS Mining scheme.
The Petions also ignored the court’s order to hand over investor records and a full accounting. Without those records, the filing says, most NovaTech depositors appear only as usernames such as “moneywhileyousleep” that cannot be matched to real people with any certainty.
Over $1.16 billion in, about $26 million traded
$1.16B
Deposited by investors, 2019 to 2023
$26M
Sent to the trading platform
$18.2M
Of that lost in trading
$134.5M+
Withdrawn to the Petions’ own wallets
The deposits went into a single payment wallet that, according to the filing, only Cynthia Petion could control. A sliver was sent to the trading platform NovaTech licensed from B2Broker, and most of that was lost. The advertised weekly returns of 2% to 4% were fabricated, the state says, and paid out of other investors’ deposits.
The pitch ran through trusted networks. The Petions reached Haitian communities through prayer groups, WhatsApp chats and Haitian Creole advertisements with religious messages, and falsely marketed NovaTech as a registered hedge fund broker licensed to trade crypto in the U.S., according to the state. Their earlier venture, AWS Mining, promised 15% to 20% monthly returns before collapsing in 2019.
When NovaTech collapsed in 2023, tens of thousands of investors could not withdraw. The state counts more than 11,000 New York victims across both schemes, among hundreds of thousands worldwide. The SEC brought a separate federal case in 2024.
The nearly $6 million arrives slowly
All four promoters are permanently banned from the securities, commodities and cryptocurrency industries.
| Promoter | Amount | Agreement |
|---|---|---|
| Martin Zizi | $2.9 million | Stipulation and consent |
| Frantz Ciceron | $2.05 million | Stipulation and consent, May 2026 |
| James Corbett | $750,000 | Stipulation and consent, October 2026 |
| Ricardo Roy Sr. | $275,861 | Assurance of discontinuance, June 2024 |
Corbett’s October agreement spreads his first $200,000 over eight $25,000 installments, one every six months.
The other $550,000 is due only once Corbett earns more than $80,000 a year, with 35% of income above that level going toward the balance. Unpaid amounts accrue 9% annual interest, and he must file sworn financial statements twice a year. The full balance becomes due at once if the state finds he misstated or left out any material asset, and money he receives from settlements with multi-level marketing companies, including GS Partners, goes to the state up to what he still owes.
Ciceron’s May agreement hands New York his rights to any distributions from the receiver in the CFTC’s separate EminiFX fraud case, plus $1.35 million in cash: $850,000 within 30 days of the court signing the order, and $500,000 in four $125,000 installments due by the end of each year from 2026 to 2029. He settled without admitting or denying the allegations. Roy, who is Cynthia Petion’s brother according to the filing, signed his agreement with the state in June 2024.
No claims process yet
The announcement does not say how much of the promoters’ money has been collected, who can claim it, or when payments to victims will begin, and the missing investor records will make any claims process harder to build. As other cases show, recovering assets and paying victims are separate steps.
Dec 31, 2026: Ciceron’s first $125,000 installment due
Apr 1, 2027: Corbett’s first $25,000 installment due
Pending: the court’s ruling on the $1.37 billion request, and any claims process from the attorney general
This article is provided for informational purposes only and does not constitute legal, financial or investment advice. Court requests, settlement obligations and distributions to investors represent separate stages of the proceedings.
Alexander Zdravkov is a market analyst and crypto journalist with interests in economics, broader financial markets and digital assets. His journey into crypto began more than four years ago, driven by a fascination with the rapid evolution of blockchain technology and the transformative potential of decentralized finance. He began analyzing market cycles and identifying emerging trends before they reach the mainstream. He holds a degree in International Relations - a background that helped shape his broader perspective on global economics, geopolitics, and the interconnected nature of modern financial markets. Whether covering the latest developments in the crypto sector or exploring broader macroeconomic themes, Alexander focuses on giving readers context rather than simply repeating headlines. During his career, he has authored more than 5,000 articles covering cryptocurrencies, traditional finance, and global market developments. His work spans everything from Bitcoin and altcoins to macroeconomic trends influencing risk assets worldwide.
