NY Attorney General Seeks $1.3B from NovaTech Founders for Alleged Crypto Fraud
New York AG Letitia James has secured $6M in settlements and is pursuing $1.3B from NovaTech founders over alleged crypto fraud.
New York AG Letitia James has secured $6M in settlements and is pursuing $1.3B from NovaTech founders over alleged crypto fraud. This is an original Token Times brief synthesising 2 outlets (Crypto.news, Cointelegraph), with their figures cross-checked, plus live market data, as of Fri, 23 Oct 2026 15:00:02 UTC.
This legal action underscores the ongoing crackdown on fraudulent crypto schemes and highlights the regulatory risks for companies operating in the space. The substantial financial penalties sought could serve as a deterrent for similar operations.
- NY AG seeks $1.3B from NovaTech founders for alleged crypto fraud.
- Four promoters have already settled for nearly $6M.
- Action follows an August 2025 default judgment.
- Case highlights regulatory risks in the crypto industry.
Both Crypto.news and Cointelegraph report that 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. They also agree that the AG is now seeking an additional $1.3 billion in payments from the companies' founders. However, Cointelegraph specifically mentions that the request follows an August 2025 default judgment, a detail not emphasized in Crypto.news' coverage.
New York Attorney General Letitia James has taken legal action against the founders of NovaTech and AWS Mining, seeking $1.3 billion in payments for alleged crypto fraud. This move comes after the AG secured nearly $6 million in settlements from four promoters associated with the schemes.
The legal action follows an August 2025 default judgment, according to Cointelegraph. The settlements with the four promoters highlight the AG's ongoing efforts to hold individuals accountable for their roles in fraudulent crypto operations.
The case underscores the regulatory scrutiny faced by crypto companies and the potential for significant financial penalties. The AG's office is likely to continue pursuing legal action against entities involved in fraudulent activities within the crypto space.
The broader crypto market remains relatively stable, with a total market cap of $2.81 trillion. 
Bitcoin is up 0.07% in the last 24 hours, and the Fear & Greed index stands at 50, indicating a neutral market sentiment.
The outcome of this case could set a precedent for future regulatory actions against fraudulent crypto schemes. Investors and operators in the crypto space should closely monitor developments in this case and similar legal proceedings.
1 key figure independently matched across 2 outlets reporting this story.
Token Times extracts the figures each outlet reports and flags the ones that agree. Numbers cited by only one outlet are attributed in the brief, not shown as corroborated.
Figures and sectors in this story, checked live against on-chain aggregators · October 23, 2026.
Token Times reads these figures directly from on-chain aggregators (DeFiLlama, mempool.space) at build time — independent of what any outlet reported. Sector totals aggregate every protocol DeFiLlama tracks in that category. Values are live and will change.
NY Attorney General Seeks $1.3B from NovaTech Founders for A — questions & answers
What is the total amount the NY AG is seeking from NovaTech founders?
The NY AG is seeking $1.3 billion in payments from the founders of NovaTech.
How much have the four promoters already settled for?
The four promoters have settled for nearly $6 million.
When was the default judgment issued?
The default judgment was issued in August 2025.
Which outlets reported this story?
This is an original Token Times brief that synthesises reporting from Crypto.news, Cointelegraph, with the key figures cross-checked for agreement across them. It is not a copy of any one article — follow the source links above for the original reporting.
Original summary — not financial advice. This is an original Token Times brief that summarises a development reported elsewhere and adds live market data for context; it is not the original article and reproduces no part of it. Follow the source link above for full details. Crypto is volatile and high-risk — always do your own research.