New York demands $1.3B from NovaTech and 11,000 victims face delay
New York Attorney General Letitia James is asking a state court to order NovaTech, its founders and related companies to pay $1.367 billion, including interest, over an alleged cryptocurrency fraud. A 2025 default ruling found the defendants liable but left damages and disgorgement amounts for later determination; the requested sum has not been awarded or collected. The state says more than 11,000 New Yorkers lost tens of millions of dollars and alleges investor deposits funded payouts to earlier investors and promoters. Records make it difficult to identify individual depositors and withdrawal recipients. The state also cites nearly $6 million in promoter obligations for victims, including a $2 million commitment from Frantz Ciceron. No completed victim payout total or distribution date has been announced.
