---
title: 'New York Seeks $1.37B From NovaTech Founders, Settles With Promoters'
url: >-
  https://www.cryptocatalyst.news/articles/2026-10-25-new-york-seeks-137b-from-novatech-founders-settles-with-promoters
canonical: >-
  https://www.cryptocatalyst.news/articles/2026-10-25-new-york-seeks-137b-from-novatech-founders-settles-with-promoters
date: '2026-10-25T12:03:41.989689+00:00'
category: policy
tags:
  - novatech
  - scams
  - new-york
  - investors
  - enforcement
source: Decrypt
source_url: >-
  https://decrypt.co/381708/crypto-scammers-prayer-groups-lure-victims-must-pay-1-3-billion-new-york
sources:
  - name: Decrypt
    url: >-
      https://decrypt.co/381708/crypto-scammers-prayer-groups-lure-victims-must-pay-1-3-billion-new-york
  - name: CoinTelegraph
    url: >-
      https://cointelegraph.com/news/new-york-ag-novatech-founders-companies-crypto-ponzi?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound
publisher: CryptoCatalyst
summary: >-
  New York AG Letitia James seeks $1.37 billion from NovaTech founders over a
  crypto Ponzi scheme that used prayer groups to lure investors. Four promoters
  settled for nearly $6 mill
image: >-
  https://www.cryptocatalyst.news/images/articles/2026-10-25-new-york-seeks-137b-from-novatech-founders-settles-with-promoters.webp
generated_by: automated editorial pipeline
---
# New York Seeks $1.37B From NovaTech Founders, Settles With Promoters

New York Attorney General Letitia James is asking a court to order NovaTech’s founders to pay about $1.37 billion over the crypto scheme. The request follows an August 2025 default judgment; the state also settled with four promoters for nearly $6 million.

## Key takeaways

- New York AG seeks $1.37 billion from NovaTech founders over crypto Ponzi scheme.
- The request follows an August 2025 default judgment against the founders.
- Four NovaTech promoters settled for nearly $6 million combined.
- Promoters used prayer groups to lure investors into the scheme.

New York Attorney General Letitia James is asking a court to order NovaTech founders Cynthia and Eddy Petion to pay about $1.37 billion over an alleged crypto Ponzi scheme. The founders have fled the country, according to source reports.

The attorney general’s request follows a default judgment entered in August 2025. Separately, New York announced settlements totaling nearly $6 million with four of NovaTech’s top promoters.

## How NovaTech’s Promoters Used Prayer Groups to Lure Investors

The allegations describe promoters using personal networks, including prayer groups, to attract investors. That detail highlights how financial scams can spread through trusted communities rather than through crypto platforms alone. The CoinTelegraph report notes the August 2025 default judgment preceded this request for payment.

## What the Settlements Mean for Victims

The four promoters’ settlements add up to nearly $6 million, but the source reports do not say how much of that money will go directly to victims or when any payments might be made. Nor do they establish that the founders will pay the full $1.37 billion sought by the state.

For people approached with crypto investments through friends, community leaders, or faith groups, the case is a reminder to verify who controls an investment and how returns are supposedly generated. A trusted introduction is not evidence that an offer is legitimate.

## FAQ

### How much is New York seeking from NovaTech’s founders?

New York’s attorney general is asking a court to order the founders to pay about $1.37 billion.

### Did New York recover the $1.37 billion from NovaTech?

The reports describe a request for court-ordered payment, not a recovery of the full amount. They do not say that the founders have paid.

### How much did NovaTech promoters agree to pay?

New York announced settlements totaling nearly $6 million with four top promoters.

### How did NovaTech promoters attract investors?

Promoters used personal networks, including prayer groups, to lure victims into the crypto investment scheme.

## Sources

This article synthesizes reporting from [Decrypt](https://decrypt.co/381708/crypto-scammers-prayer-groups-lure-victims-must-pay-1-3-billion-new-york), [CoinTelegraph](https://cointelegraph.com/news/new-york-ag-novatech-founders-companies-crypto-ponzi?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound), written by an automated editorial pipeline. See https://www.cryptocatalyst.news/editorial-policy.

## How to cite

CryptoCatalyst.news, "New York Seeks $1.37B From NovaTech Founders, Settles With Promoters", 2026-10-25, https://www.cryptocatalyst.news/articles/2026-10-25-new-york-seeks-137b-from-novatech-founders-settles-with-promoters