New York Seeks $1.3 Billion from NovaTech Founders Over Prayer Group Scheme
New York's attorney general filed a motion seeking $1.37 billion from NovaTech's founders, who have fled the country, over a cryptocurrency fraud scheme that targeted victims through prayer groups. The state also settled with four top promoters for nearly $6 million, with some obligations extending through 2029.
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The Judgment and Enforcement Action
New York's attorney general moved to enforce a 2025 liability ruling against NovaTech's founders by seeking $1.37 billion in damages. The founders have left the country, according to state filings. The motion was filed on October 22 and targets approximately 11,000 victims who were defrauded through the scheme.
Settlements with Promoters
The state separately settled with four top promoters of the scheme for nearly $6 million total. One promoter, identified as Ciceron, agreed to installment payments that extend through 2029. These settlements were reached as part of the broader enforcement against the NovaTech network.
How the Scheme Operated
NovaTech used prayer groups as a recruitment channel to lure victims into what prosecutors characterized as a cryptocurrency investment fraud. The use of religious communities as a vector for recruitment allowed the scheme to gain trust and scale across thousands of participants before authorities intervened.
Why It Matters
For Traders
NovaTech tokens or any assets associated with the platform remain subject to ongoing enforcement; holders should assume total loss.
For Investors
The case demonstrates regulators are pursuing significant damages awards and multi-year settlement terms against fraudulent projects and their promoters.
For Builders
Legitimate projects should document KYC practices and marketing channel vetting to distinguish themselves from schemes that exploit trust-based communities.
This article is for information only and is not financial advice. Read the full disclaimer.
