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New York AG seeks $1.37B from NovaTech founders over Ponzi scheme

The request follows an August 2025 default judgment, with the AG also announcing nearly $6 million in settlements with four promoters.

By RWA Crypto Watch Editorial Team · Published Oct 23, 2026, 10:12 AM UTC · Updated 2026-10-23 · Risk level: medium
Sources checked: Oct 23, 2026, 3:37 PM UTC

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What happened

The request follows an August 2025 default judgment, with the AG also announcing nearly $6 million in settlements with four promoters.

Reported details

  • New York wants $1.3 billion from NovaTech’s founders, whose platform took in $1.16 billion and traded a fraction of it.
  • New York Attorney General Letitia James has secured nearly $6 million in settlements from four promoters of the NovaTech and AWS Mining crypto fraud schemes and asked a court to order an additional $1.3 billion in payments from the companies’…

Why this matters

New York AG is a factual update rather than a structural change to tokenized assets. Its value to a desk is the sourced detail and the timing, so read it next to the linked reporting and treat any figure the sources do not state as unknown.

Evidence boundary

On New York AG, the scope is limited to what the linked 3 reports state, and where they diverge both positions are recorded without either being picked in advance; the headline figure is what to check first.

What to verify

Corroborate New York AG with one independent dated source, and treat any figure the linked reports do not state as unknown rather than inferred.

Sources and editorial check time

This information is educational and is not financial, legal, or tax advice.

Sources