New York Attorney General Letitia James is seeking a $1.37 billion judgment against Cynthia Petion and Eddy Petion, the operators behind cryptocurrency schemes NovaTech and AWS Mining, after the duo allegedly defrauded hundreds of thousands of investors worldwide out of more than $1 billion.
Synthetic Yields and Community Targeting
The enforcement action details two successive pyramid schemes that heavily targeted Haitian and other immigrant communities using prayer groups, WhatsApp chats, and advertisements in Haitian Creole. The initial scheme, AWS Mining, sold cryptocurrency mining contracts promising 15% to 20% monthly returns and 200% yields within 15 months before collapsing in 2019.
Following that failure, the Petions launched NovaTech, marketing it as a registered hedge fund broker that advertised weekly trading returns of 2% to 4%—amounting to over 140% annually. However, records from white-label platform provider B2Broker revealed that out of more than $1 billion deposited by investors between 2019 and 2023, only $26 million was ever actually traded, with traders losing $18.2 million of that amount. Returns paid to early participants came entirely from newer investor deposits until the platform halted withdrawals in mid-2023.
Siphoned Funds and Regulatory Enforcement
According to prosecutors, Cynthia Petion solely controlled the primary investor account and transferred $134.5 million directly into personal wallets, along with $4.7 million tied to the earlier AWS Mining venture. Both Cynthia and Eddy Petion failed to appear in court and have fled the United States.
In August 2025, a default judgment permanently barred the founders and their companies from the securities, commodities, and cryptocurrency sectors. Separately, four top promoters of the scheme agreed to pay nearly $6 million in disgorgement and accepted matching industry bans. This suit arrives alongside broader enforcement pushes in the region, including recent high-profile federal legal actions involving corporate crypto entities.
Key Takeaways
- Target Judgment: NY AG Letitia James is pursuing $1.37 billion against founders Cynthia and Eddy Petion.
- Fabricated Trading: NovaTech claimed 140%+ annual yields, but traded only $26 million of $1 billion deposited, losing $18.2 million.
- Diverted Capital: Cynthia Petion siphoned $134.5 million directly to personal wallets.
- Promoter Penalties: Four key promoters agreed to pay nearly $6 million in disgorgement alongside industry bans.
Why It Matters
This massive judgment request underscores how enforcement agencies are leveraging platform service records, such as white-label trading logs, to dismantle complex multi-level marketing crypto schemes. By pursuing both the primary organizers and high-level promoters, regulatory authorities are signaling that marketing intermediaries face direct liability for propagating fraudulent high-yield products. Furthermore, the case highlights persistent vulnerabilities in affinity groups and retail markets during industry downturns, where predatory schemes exploit community trust.
