A promised stream of crypto investment returns has now collided with a demand for more than a billion dollars in repayment. New York Attorney General Letitia James is seeking roughly $1.367 billion from the founders of NovaTechFX, according to a report published by crypto.news on October 23, 2026. The request centers on what the state describes as a NovaTechFX pyramid scheme that reportedly misled hundreds of thousands of investors worldwide.
Key facts
- According to crypto.news (October 23, 2026), New York Attorney General Letitia James is seeking about $1.367 billion in disgorgement and prejudgment interest from NovaTechFX founders Cynthia and Eddy Petion.
- The demand follows a default judgment in a New York case alleging NovaTech ran a cryptocurrency investment pyramid scheme that misled hundreds of thousands of investors worldwide, per crypto.news.
- Four promoters, Martin Zizi, Frantz Ciceron, Ricardo Roy Sr., and James Corbett, agreed to pay nearly $6 million combined, according to crypto.news.
- The same four promoters accepted permanent industry bans covering securities, commodities and cryptocurrency, crypto.news reports.
- The founders are not reported to have been criminally convicted in this development, and the $1.367 billion is an amount sought, not money recovered for victims.
What the NovaTechFX Pyramid Scheme Case Alleges
The New York attorney general's case alleges that NovaTech presented itself as a cryptocurrency investment opportunity while operating as a pyramid scheme. According to crypto.news, the alleged operation drew in hundreds of thousands of investors around the world.
Cynthia and Eddy Petion are named as the founders of NovaTechFX. The state is now asking for disgorgement, which means forcing a party to give up money gained through alleged wrongdoing, plus prejudgment interest.
Those two components add up to the roughly $1.367 billion figure. That number reflects what the state wants a court to order, and it should not be read as a confirmed tally of victim losses or a sum already collected.
Why a Pyramid Scheme Label Matters
A pyramid scheme typically depends on money from new participants to pay earlier ones, rather than on real profits from a legitimate business. Regulators often point to heavy recruitment incentives and vague descriptions of how returns are generated as warning signs.
In this case, the allegation is that investors were lured with a purported crypto opportunity. The state's description, as relayed by crypto.news, frames the program as a pyramid structure rather than a genuine trading or investment product.
Understanding the Default Judgment Against NovaTech Founders
The financial demand comes after a default judgment. A default judgment generally happens when a defendant fails to respond to a case or take part in the proceedings as required. A court can then rule in favor of the party that brought the case.
It helps to be precise about what that means. A default judgment is a civil outcome. It is not a criminal conviction, and crypto.news does not report that the founders have been criminally convicted.
Allegations, Judgment, Settlement and Recovery
This story involves several different stages, and they are easy to blur together. Here is how they separate based on the reporting:
- Allegations: The state claims NovaTech operated a crypto investment pyramid scheme that misled investors globally.
- Default judgment: A court ruling in the civil case, which opened the door to the current financial request.
- Amount sought: Roughly $1.367 billion in disgorgement and prejudgment interest, requested by the attorney general.
- Agreed settlements: Four promoters agreed to pay nearly $6 million combined.
- Actual recovery: No report confirms that any specific amount has reached victims.
The Four Promoters Who Agreed to Settle
Separate from the founders, four promoters resolved their part of the matter. Crypto.news names them as Martin Zizi, Frantz Ciceron, Ricardo Roy Sr., and James Corbett.
According to the report, the group agreed to pay nearly $6 million combined. They also accepted permanent industry bans covering securities, commodities and cryptocurrency.
An agreed settlement is different from a court finding after a contested trial. Settlements often resolve claims without a full adjudication of every allegation, so readers should treat the terms as agreements rather than proof of every claim in the complaint.
What the Industry Bans Mean
A permanent ban means these individuals are barred from working in the covered areas. Per the report, that includes securities, commodities and cryptocurrency. For regulators, such bans aim to stop repeat conduct and signal that promoting risky schemes carries lasting professional consequences.
How Big Is $1.367 Billion in Context?
The gap between the promoter settlements and the founder demand is striking. The four promoters agreed to pay close to $6 million in total. The state is asking for more than 200 times that amount from the founders.
That contrast also mirrors the pitch that victims of investment schemes often hear. Promises of steady or outsized returns sit on one side. On the other sits a court filing asking for a billion dollars back.
Whether any of that money is ever collected is a separate question. Large civil demands can take years to enforce, and collection depends on what assets can be located and reached.
Why Crypto Investment Pyramid Schemes Keep Spreading
Crypto schemes spread quickly because they can cross borders with a few clicks. Promoters can recruit through social media, messaging groups and online events, which helps a program reach people in many countries at once. That global reach is part of why the NovaTech case is described as affecting investors worldwide.
Other recent cases show how regulators and prosecutors are responding to investor harm in different forms. One example is the sentencing in a crypto fraud case, which shows how a criminal track can differ from a civil one. Another is the SEC action over a private fund, which highlights how securities regulators pursue alleged investor deception. A third is the guilty plea tied to 777 Partners, another investor fraud matter with a very different legal path.
Warning Signs of an Investment Pyramid Scheme
Anyone weighing an online investment can check for common red flags. These patterns are widely cited by consumer protection agencies:
- Guaranteed or unusually high returns with little explanation of how profits are made.
- Pay structures that reward recruiting others more than selling a real product or service.
- Pressure to invest quickly or to bring in friends and family.
- Vague answers about who runs the company and where it is registered.
- Difficulty withdrawing money once you ask to cash out.
Checking whether a promoter or platform is registered with state and federal regulators is a sensible first step. A search of a regulator's enforcement actions can also reveal prior complaints.
What Investors Can Do If They Were Affected
People who believe they put money into NovaTech or a similar program have options. Keep records of every deposit, message, wallet address and promotional document. Those details help investigators trace funds.
You can file a report with the FTC at reportfraud.ftc.gov and with the FBI Internet Crime Complaint Center at ic3.gov. Victims may also contact their state attorney general's office. Be cautious of anyone who contacts you offering to recover lost crypto for an upfront fee, since recovery scams commonly target past victims.
What Happens Next
The next step is for the court to consider the attorney general's request. A judge will decide whether to award the amount sought and in what form. Until that happens, the $1.367 billion remains a demand.
Readers can follow the original reporting at crypto.news for updates. Any future developments, such as a final order or details on distributions to victims, would be the key markers to watch.
Bottom Line on the NovaTechFX Pyramid Scheme Case
The facts reported so far are clear on a few points. New York's attorney general is seeking about $1.367 billion from NovaTechFX founders Cynthia and Eddy Petion after a default judgment. Four promoters agreed to pay nearly $6 million and accepted permanent bans. The founders have not been reported as criminally convicted, and no confirmed victim recovery has been announced.
If an investment promises big returns and rewards recruitment, slow down and verify it before sending money. Report suspicious offers to the FTC or IC3, and share this article with anyone considering a crypto opportunity that sounds too good to be true.
Frequently Asked Questions
Who are the NovaTechFX founders facing the $1.3 billion demand?
The founders are Cynthia and Eddy Petion, according to crypto.news. New York Attorney General Letitia James is seeking about $1.367 billion in disgorgement and prejudgment interest from them following a default judgment.
Have the NovaTech founders been convicted of a crime?
No. The reporting does not say the founders have been criminally convicted. The case described is a civil matter in which a default judgment was entered, and the $1.367 billion is the amount the state is seeking.
What is a default judgment in the NovaTech case?
A default judgment is a court ruling that typically happens when a defendant does not respond to or take part in a case as required. It is a civil outcome, not a criminal conviction, and it allowed the attorney general to request a financial remedy.
Who settled in the NovaTechFX case?
Four promoters, Martin Zizi, Frantz Ciceron, Ricardo Roy Sr., and James Corbett, agreed to pay nearly $6 million combined, according to crypto.news. They also accepted permanent industry bans covering securities, commodities and cryptocurrency.
Will NovaTech investors get their money back?
That is not confirmed. The $1.367 billion is an amount sought by the state, not money already recovered. Whether and how much reaches victims depends on court decisions and on what assets can be collected.
