New York AG seeks $1.3 billion from NovaTech founders after default judgment
- —NovaTech collected over $1 billion in digital assets between August 2019 and April 2023
- —Only about $26 million was actually traded; returns were paid from new deposits
- —The scheme collapsed in May 2023, hitting over 200,000 investors, including 11,000 in New York
- —Nearly $6 million has been recovered from four promoters; the Petions fled the US
Why it matters: The case highlights New York's broad Martin Act powers against crypto Ponzi schemes, though recovery is complicated by the defendants' departure from US jurisdiction.
Source: Crypto Briefing