NovaTech Founders Face $1.37 Billion Claim Over $1.16…
By Abdelaziz Fathi
AI summary of the source article
The New York Attorney General is seeking nearly $1.37 billion from NovaTech founders Cynthia and Eddy Petion. The request follows wallet analysis showing investors deposited over $1.16 billion in cryptocurrency, while only 2.2% was deposited onto trading software.
Why it matters
The settlements extend New York’s use of industry bans in crypto enforcement cases, including its recent settlement with former Celsius CEO Alex Mashinsky.
Key facts
- New York requested $1.1345 billion in disgorgement plus $232.5 million in prejudgment interest against NovaTech and its founders.
- CoinPayments records show investors deposited $1,160,544,294 in cryptocurrency into NovaTech between August 2019 and May 2023, with only $25,994,603 sent to trading platform B2Broker.
- Four NovaTech promoters settled claims for a combined $5.98 million and received permanent bans from securities, commodities, and cryptocurrency industries.
Source excerpt · FinanceFeeds
New York is seeking nearly $1.37 billion from NovaTech founders Cynthia and Eddy Petion after newly filed transaction analysis showed that investors sent more than $1.16 billion in cryptocurrency to the company while only a small fraction reached the trading platform NovaTech said it used to generate returns. The New York Attorney General’s Office asked a state court to order the Petions and relat…