New York's $1.37 billion monetary request follows an August 2025 default judgment issued against Cynthia and Eddy Petion and NovaTech after the founders failed to respond to the state's lawsuit

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Cynthia and Eddy Petion departed the United States prior to the August 2025 default judgment in the NovaTech case and failed to produce court-ordered investor records

Federal Judge Marcelo Martínez de Giorgi cleared Karina Milei, General Secretary of the Presidency of Argentina, finding no evidence she received payments to arrange meetings for LIBRA creators

New York Attorney General Letitia James announced the NovaTech scheme settlements totaling nearly $6 million with four NovaTech promoters: Martin Zizi, Frantz Ciceron, James Corbett, and Ricardo Roy Sr.

The October 23, 2026 court decision dismissed criminal fraud investigations against U.S. launch adviser Hayden Davis, as well as associates Mauricio Novelli and Manuel Terrones Godoy

Cynthia Petion, the sole authorized user on NovaTech's investor account, authorized withdrawals of at least $134.5 million to wallets belonging to herself and Eddy Petion

New York Attorney General Letitia James asked a state court on October 22, 2026 to order NovaTech founders Cynthia and Eddy Petion to pay roughly $1.37 billion, comprising $1.13 billion in disgorgement and $232.5 million in interest

All four NovaTech promoters agreed to permanent bans from the securities, commodities, and cryptocurrency industries

On October 23, 2026, Argentine Federal Judge Marcelo Martínez de Giorgi dismissed the criminal fraud investigation against Argentine President Javier Milei over the February 2025 LIBRA memecoin collapse, officially closing proceedings without reversing investor financial losses

Argentine law enforcement authorities initiated a criminal investigation to examine potential fraud and the involvement of individuals associated with the February 2025 LIBRA memecoin launch

Argentine Prosecutor Eduardo Taiano formally requested the dismissal of the criminal fraud investigation into President Javier Milei's promotion of the LIBRA memecoin

The Petions, Cynthia and Eddy, resided in Wellington, Florida until roughly May 2022, and SEC filings located Cynthia Petion in Panama as of August 2024

New York Attorney General Letitia James is seeking $4.7 million from Cynthia and Eddy Petion tied to the AWS Mining crypto mining scheme

Judge Alvin K. Hellerstein ruled under Federal Rule of Civil Procedure 60 that newly acquired knowledge of facts existing when the January 2025 consent order was entered does not constitute a significant change in factual circumstances

The CFTC filed a lawsuit in 2022 alleging Gemini Trust Company made false or misleading statements of material fact in 2017 regarding a Bitcoin futures contract relying on Gemini auction prices

On September 25, 2026, the U.S. Court of Appeals for the Sixth Circuit ruled in KalshiEx LLC v. Schuler that sports event contracts are not swaps under federal law and that the Commodity Exchange Act does not preempt Ohio sports gaming laws

The Ohio Casino Control Commission warned prediction market operators that non-compliance could result in civil financial penalties equaling Ohio-generated revenue, as well as state criminal penalties for unlicensed bookmaking

Polymarket US, operating through CFTC-registered QCX LLC, filed a federal lawsuit in the U.S. District Court for the Southern District of Ohio on October 16, 2026, against Interim Attorney General Andy Wilson and the Ohio Casino Control Commission

On October 2, 2026, the Ohio Casino Control Commission sent cease-and-desist letters to 10 prediction market operators demanding they halt unlicensed sports event contracts and provide written compliance confirmation by October 16, 2026

As of October 21, 2026, an Ohio Casino Control Commission spokesperson stated that one notified prediction market operator confirmed compliance while two operators filed lawsuits against the state

The U.S. Court of Appeals for the Third Circuit ruled in favor of Kalshi against New Jersey on federal preemption, prompting New Jersey to petition the U.S. Supreme Court for review