Federal Judge Rules Against Eddy Alexandre in Major Crypto Fraud
A U.S. federal judge has ruled that Eddy Alexandre, founder of the failed crypto investment platform EminiFX, must repay more than $228 million in restitution after being found guilty of running a massive Ponzi scheme that defrauded tens of thousands of investors. The judgment adds to his earlier criminal conviction and prison sentence, marking one of the most significant fraud rulings in the crypto sector in recent years.
The ruling, issued by U.S. District Judge Valerie Caproni in New York, holds both Alexandre and EminiFX jointly liable for $228,576,962 in restitution. In addition, Alexandre was ordered to pay $15 million in disgorgement, though any restitution payments will offset this amount.
According to the U.S. Commodity Futures Trading Commission (CFTC), the decision reflects the scale of deception carried out through EminiFX’s so-called “Robo-Advisor Assisted Account,” which promised investors weekly returns between 5% and 9.99%.
“Defendants Alexandre and EminiFX misled investors with false promises of consistent high returns while concealing ongoing losses,” the court order noted.
How EminiFX Defrauded Investors
Launched in 2021, EminiFX rapidly gained traction, drawing in over 25,000 participants and raising more than $262 million in just eight months. The platform claimed to use advanced automated trading strategies in both crypto and forex markets.
In reality, court records show the company sustained net losses of at least $49 million and never deployed the trading technology it advertised. Investigators also revealed that Alexandre diverted over $15 million for personal use, covering luxury cars, credit card bills, and cash withdrawals.
This civil ruling follows Alexandre’s 2022 criminal case, where he pleaded guilty to commodities fraud. He was sentenced to nine years in prison and ordered to pay $213 million in restitution.
Expert Perspective
Financial crime analysts stress that this case highlights the importance of transparency in crypto-related investments. “When platforms promise guaranteed double-digit returns, it should immediately raise red flags for investors,” one expert commented.
The court-appointed receiver has already begun distributing recovered funds to victims, with the first payouts approved earlier this year. The EminiFX case serves as a stark reminder of the risks associated with high-yield crypto investment schemes and underscores the ongoing efforts of regulators to protect investors from fraudulent platforms.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.