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

New York's attorney general is seeking $1.37 billion from the founders of NovaTech, which authorities describe as a Ponzi scheme. The request follows an August 2025 default judgment, and the AG also announced nearly $6 million in settlements with four promoters. For traders, the case reinforces regulatory pressure on fraudulent crypto-adjacent investment schemes and could weigh on confidence in unregulated platforms.