New York Attorney General Sues for $1.37 Billion
New York Attorney General Letitia James has initiated a legal action seeking a judgment of $1.37 billion against the operators of two cryptocurrency investment schemes, Novatek and its predecessor, AWS Mining. These operations have been accused of defrauding over a billion dollars from hundreds of thousands of investors globally.
Fleeing Founders
Cynthia and Eddie Pettion, the alleged founders of these schemes, have reportedly evaded justice by leaving the country and failing to appear in court. “Novatek and AWS Mining deceived thousands of vulnerable New Yorkers by telling them they were making safe investments when in fact they were victims of a pyramid scheme,” stated James in her press release. She emphasized that the scammers specifically targeted immigrants and religious communities with misleading promises of financial stability.
Targeting Vulnerable Communities
The promotional strategies employed by AWS Mining and Novatek heavily involved outreach within Haitian and other immigrant groups. Tactics included recruitment through prayer groups, WhatsApp conversations, and advertisements in Haitian Creole.
Details of the Schemes
AWS Mining offered cryptocurrency mining contracts that guaranteed striking returns, claiming investors would receive monthly yields of 15% to 20% and potentially see 200% returns within 15 months. Following its bankruptcy in 2019, the Pettion couple launched Novatek, presenting it as a registered hedge fund broker. This venture purported to offer weekly trading returns ranging from 2% to 4%, promising an impressive annual profit exceeding 140%.
Allegations of Fraud
Prosecutors allege that the financial documents submitted by the Pettion duo were fraudulent. Evidence indicates that, despite investors depositing over $1 billion from 2019 to 2023, only around $26 million was actually engaged in trading. Notably, losses from these trades amounted to $18.2 million. The payouts to earlier investors were reportedly sourced from the capital of newer investors rather than legitimate trading profits. The collapse of Novatek in mid-2023 left many investors unable to access their funds.
Restitution Efforts
In addition to the initial claim for $1.37 billion, AG James is pursuing $134.5 million that was allegedly withdrawn by the Pettion couple from accounts they controlled, alongside an additional $4.7 million related to the former AWS Mining scheme. A default judgment already issued in August 2025 effectively bars the Petitions and their enterprise from engaging in securities, commodities, and cryptocurrency activities.
Promoters Held Accountable
Separately, four primary promoters associated with these schemes have consented to pay nearly $6 million in restitution to affected investors and have also accepted prohibitions from working in the industry going forward.
