Key Highlights:
- New York authorities are pursuing a massive $1.37 billion judgment against the operators behind the fraudulent cryptocurrency ventures AWS Mining and NovaTech.
- Out of more than $1 billion deposited by victims into NovaTech between 2019 and 2023, only $26 million was traded—resulting in an $18.2 million loss while fabricated returns were paid out using new investor funds.
- Cynthia Petion and her husband face permanent industry bans, while prosecutors seek the recovery of $134.5 million siphoned into personal wallets, alongside millions from promoters.
The Rise and Collapse of AWS Mining and NovaTech
The New York Attorney General is seeking a $1.37 billion judgment against the operators behind widespread cryptocurrency fraud operations that targeted vulnerable investors over several years. The fraudulent operations originated with AWS Mining, which marketed cryptocurrency mining contracts that guaranteed returns of 15 to 20 percent per month, or up to 200 percent within 15 months, before crashing in 2019. Following the unraveling of AWS Mining, Cynthia Petion and her husband established NovaTech, branding it as a registered hedge fund broker.
NovaTech lured participants by advertising weekly trading returns between two and four percent, translating to an annual yield exceeding 140 percent. Promoters aggressively marketed both schemes within Haitian and other immigrant communities, utilizing prayer groups, WhatsApp messaging channels, and advertisements translated into Haitian Creole to build trust and solicit capital.
Fabricated Trades and Massive Investor Losses
According to prosecutors, the high yields showcased by NovaTech were entirely fabricated. Transaction data from B2Broker, the provider of NovaTech’s white-label trading architecture, revealed that out of more than $1 billion deposited by investors between 2019 and 2023, only approximately $26 million was deployed into actual trading. Furthermore, NovaTech’s internal traders lost $18.2 million of that sum.
Instead of generating genuine investment profits, NovaTech operated as a classic Ponzi scheme, channeling deposits from newer participants to pay out yields to earlier investors. The venture ultimately collapsed in mid-2023, stranding tens of thousands of victims who were suddenly blocked from withdrawing their assets.
Regulatory Enforcement and Clawback Efforts
State regulators are pursuing aggressive clawback actions to recover investor capital. In addition to the broader enforcement penalty, the Attorney General is targeting $134.5 million that the Petions allegedly transferred directly into their personal digital wallets from an investor account controlled exclusively by Cynthia Petion. Authorities are also demanding the return of $4.7 million linked to the earlier AWS Mining venture.
A default judgment entered in August 2025 previously barred the Petions and their associated corporate entities from participating in the securities, commodities, and cryptocurrency sectors. Alongside the primary operators, four top-tier promoters involved in the scheme have agreed to pay roughly $6 million in disgorgement to affected victims and have accepted corresponding industry bans.
Why This Matters
The aggressive enforcement action highlights the persistent threat of affinity fraud within the cryptocurrency ecosystem, where bad actors leverage shared cultural, linguistic, or religious ties to bypass skepticism. The case underscores regulatory scrutiny over white-label platforms and unregulated entities claiming to operate as registered hedge funds. By pursuing personal wallet transfers, major financial penalties, and lifetime industry bans, regulators aim to establish stronger legal mechanisms to dismantle cross-border crypto pyramid schemes and recover assets for impacted communities.
Frequently Asked Questions
What were the actual trading activities conducted by NovaTech?
Although NovaTech accumulated over $1 billion in investor deposits between 2019 and 2023, records show that only around $26 million was ever allocated to real-market trading. The platform’s trading activities performed poorly, losing $18.2 million, while reported weekly yields of two to four percent were falsified and funded by incoming deposits.
How were AWS Mining and NovaTech marketed to victims?
Promoters targeted Haitian and immigrant demographics through affinity fraud tactics, embedding themselves into local prayer circles, coordinating outreach in WhatsApp groups, and distributing promotional campaigns in Haitian Creole to attract community trust.
What legal penalties do Cynthia Petion and the operators face?
A default judgment from August 2025 prohibits the Petions and their businesses from operating within the crypto, securities, and commodities sectors. In addition, the New York Attorney General is pursuing a $1.37 billion judgment, including the clawback of $134.5 million transferred to the Petions’ private wallets and $4.7 million tied to AWS Mining, while four key promoters have agreed to settle with nearly $6 million in restitution.
