New York says four promoters will pay nearly $6 million over a crypto scheme that drew in 11,000 New Yorkers, but most victims are still waiting on any recovery.
New York Attorney General Letitia James has secured $5,975,861 from four promoters of a cryptocurrency scheme called NovaTech. They have also been permanently banned from the securities, commodities and cryptocurrency industries. More than 11,000 New Yorkers were caught up in the scheme and its predecessor, AWS Mining. The money is meant to benefit victims, but it is a small slice of what investors put in.
The attorney general's office announced the settlements on October 22. It says the promoters made misleading statements, acted as unregistered brokers and took part in illegal pyramid schemes. A pyramid scheme pays people mainly for bringing in new members, not for real investment profits.
The story starts with AWS Mining, which promised monthly returns of 15% to 20%. Promoters also advertised 200% in 15 months, plus bonuses for recruiting others. The company did not make enough profit to back those claims and collapsed in 2019. Cynthia and Eddy Petion then launched NovaTech, which investigators say kept using misleading promises and recruitment rewards.
Investigators say the schemes targeted Haitian and other immigrant communities through prayer groups, social media and WhatsApp. NovaTech ads appeared in Haitian Creole and used religious messaging. Existing participants were paid to recruit friends, relatives and neighbors. That made the offer feel safe because it came from someone people knew.
The attorney general is also asking a court to order the Petions to pay $1.3 billion in damages and disgorgement. That means giving back money earned improperly. The request follows an August 2025 default judgment. It is a court request, not money recovered. A settlement also does not guarantee that every victim will be repaid in full.
The warning signs are simple. Be wary of guaranteed or unusually high returns, claims of little risk, and bonuses for recruiting people. Check a company's claims yourself, understand how it says it makes money, and do not rely only on a trusted person's word. The SEC's Investor.gov site offers free tools for spotting fraud and researching financial professionals.
Anyone who thinks they lost money should keep records. Useful items include:
New York residents can contact the attorney general's Investor Protection Bureau. Be careful with recovery scams, where fraudsters contact past victims and demand upfront payment to get money back. For any real recovery process, rely on official government communications.
If a pitch promises steady high returns and pays you to recruit others, verify it independently, and never pay upfront fees to get lost money back.
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