Regulationâ—Ź Neutral
New York Seeks $1.37 Billion From Fled NovaTech Founders in Crypto Fraud Case
TradingGain Newsroom··23 Oct 2026, 16:31 UTCNew York's attorney general asked a court to order NovaTech's founders, who left the country, to pay about $1.37 billion. The state also settled with four top promoters for nearly $6 million. Enforcement actions like this can keep regulatory pressure on crypto schemes and affect trader confidence.
Why it matters
- Regulators are pursuing large payouts from crypto fraud operators, even when founders have left the country.
- Four top promoters agreed to settle with New York for nearly $6 million.
- Scams that targeted victims through prayer groups could draw more scrutiny of crypto marketing.
What to watch next
Watch whether the court orders NovaTech's founders to pay the roughly $1.37 billion New York has requested.
This brief is written by TradingGain from public reporting by Decrypt.Read original ↗