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New York Seeks $1.37B from Novatech Founders in Crypto Fraud Case
New York is seeking about $1.37 billion from Novatech founders Cynthia and Eddy Petion after a court entered a default judgment in a crypto fraud case. State filings show investors deposited more than $1.16 billion, while only about $26 million was sent to the platform used for trading. The case centers on Novatech, which prosecutors say promised investors weekly crypto trading returns of roughly 2% to 4% while using incoming deposits to fund withdrawals and recruitment rewards. The gap between deposits and actual trading is the most striking number in the filing.