Federal Judge Declares EminiFX a Ponzi Scheme, Orders $228M in Restitution

EminiFX, a cryptocurrency investment platform that once claimed to revolutionize automated trading, has been officially declared a Ponzi scheme by a New York federal court.

Its founder, Eddy Alexandre, is now facing more than $228 million in restitution payments, in addition to $15 million in disgorgement, following a judgment secured by the US Commodity Futures Trading Commission (CFTC).

Church Ties and Crypto Lies

The order, issued by US District Judge Valerie Caproni, comes more than three years after Alexandre was first charged and follows his guilty plea in a separate criminal case. Alexandre is already serving a nine-year prison sentence after admitting to commodities fraud in 2023 and swindling almost $250 million from over 25,000 investors.

EminiFX was launched in 2021. Many of Alexandre’s investors came from his own circles, as he used his influence in the church and Haitian community to win trust and even enlisted fellow members to recruit participants.

The platform promised steady weekly profits ranging between 5% and 9.99% and promoted what it described as a “Robo-Advisor Assisted Account,” which was allegedly capable of generating consistent returns in cryptocurrency and foreign exchange markets through automated trading. Within just eight months, the platform raised about $262 million.

Court filings show, however, that the promised technology never existed.

Eddy Alexandre’s Fall

Investigators found that the company suffered losses of at least $49 million and operated by recycling new investor funds to pay existing participants. Alexandre also withdrew at least $15 million for personal expenses, which included luxury cars, credit card payments, and cash withdrawals.

Regulatory action intensified in May 2022, when prosecutors and the CFTC filed parallel cases against Alexandre. The criminal proceeding concluded with a prison term and a $213 million restitution order. The latest civil ruling adds further financial penalties but clarifies that any restitution payments made will offset his disgorgement obligation.

A receiver appointed by the court has been working since 2022 to trace and recover funds linked to EminiFX. Earlier this year, the first round of recovered money was returned to investors after a distribution plan received judicial approval.

The conclusion of the civil case brings additional clarity to one of the most prominent crypto frauds of the past three years, while recovery efforts continue for thousands of investors who lost funds in the scheme.

The post Federal Judge Declares EminiFX a Ponzi Scheme, Orders $228M in Restitution appeared first on CryptoPotato.