Crypto Scammers Who Used Prayer Groups to Lure Victims Must Pay $1.3 Billion, Says New York
New York Attorney General Letitia James is seeking about $1.37 billion from collapsed crypto platform NovaTech, its founders Cynthia and Eddy Petion, and related companies. The request follows a 2025 default judgment after the founders fled the U.S. and failed to answer the state’s lawsuit; they were also barred from the securities, commodities and crypto industries. The state alleges NovaTech raised more than $1 billion by promising extraordinary returns, while using new deposits to fund payouts and recruitment bonuses. Investors deposited about $1.16 billion in crypto, and at least $134.5 million went to wallets belonging to the Petions. James also announced nearly $6 million in settlements with four promoters, who are barred from those industries. More than 11,000 New Yorkers were among the victims.
