EminiFX Founder Ordered to Repay $228M in Crypto Ponzi Scheme
EminiFX Founder Faces $228M Restitution Order
Eddy Alexandre, the founder of the now-defunct crypto platform EminiFX, has been ordered by a federal judge in New York to pay more than $228 million in restitution. The ruling follows the court's determination that EminiFX operated as a Ponzi scheme, defrauding tens of thousands of investors.
The U.S. Commodity Futures Trading Commission (CFTC) secured a summary judgment against Alexandre and EminiFX. Judge Valerie Caproni held them jointly liable for $228,576,962 in restitution and an additional $15,049,500 in disgorgement, according to court documents released Tuesday.
This ruling comes more than three years after the initial charges against Alexandre and over a year after his guilty plea in a related criminal case.
EminiFX's False Promises and Investor Losses
Launched in 2021, EminiFX attracted over 25,000 investors in just eight months, raising more than $262 million. The company promised weekly returns of 5% to 9.99% through a “Robo-Advisor Assisted Account,” claiming to use automated trading strategies in crypto and forex markets.
However, court filings revealed that the platform sustained net losses of at least $49 million and never deployed the advertised technology. Alexandre allegedly diverted at least $15 million for personal expenses, including luxury cars and credit card bills. Investor withdrawals were funded using new participants' deposits, a hallmark of a Ponzi scheme.
Alexandre's Criminal Sentence and Asset Recovery
Alexandre's legal troubles began in May 2022 when prosecutors and the CFTC filed parallel actions. In the criminal case, he admitted to commodities fraud and received a nine-year prison sentence, along with a $213 million restitution order.
The civil case's outcome adds a separate restitution and disgorgement mandate. The court clarified that any restitution payments would offset his disgorgement obligation. A court-appointed receiver has been managing asset recovery and began distributing recovered funds to victims earlier this year, following the approval of a distribution plan in January.
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