EminiFX CEO Sentenced to Nine Years for $240 Million Crypto Fraud Scheme

Eddy Alexandre, the CEO of a purported cryptocurrency and forex trading platform known as EminiFX, has been sentenced to nine years in prison for a $240 million fraud scheme. The sentencing was announced by Damian Williams, the United States Attorney for the Southern District of New York, on July 19, 2023.

Alexandre was found guilty of defrauding over 25,000 investors of more than $248 million through the EminiFX trading platform. The fraudulent scheme was operational from September 2021 to May 2022. Alexandre had promised investors high returns of at least 5% weekly through a “Robo-Advisor Assisted account” for automated investments in cryptocurrency and forex trading. He claimed this technology was his “trade secret” and refused to disclose any details about it.

However, the reality was far from the promises made. EminiFX did not generate 5% weekly returns for its investors. Alexandre did not invest a significant portion of the investor funds entrusted to him and incurred millions of dollars in losses on the limited funds he did invest. Furthermore, he misdirected at least approximately $14.7 million to his personal bank account, using $155,000 of investor funds to purchase a BMW car for himself and spending an additional $13,000 on car payments, including to Mercedes Benz.

The case against Alexandre is a stark reminder of the risks associated with cryptocurrency investments. It also underscores the importance of due diligence and skepticism towards promises of guaranteed high returns. 

In addition to his prison term, Alexandre was sentenced to three years of supervised release. He was also ordered to pay forfeiture in the amount of $248,829,276.73 and restitution in the amount of $213,639,133.53.

The Securities and Commodities Fraud Task Force of the Office handled the case, and Assistant U.S. Attorneys Nicholas Folly and Jared Lenow were in charge of the prosecution. The inquiry included participation from the Federal Bureau of inquiry and the Commodity Futures Trading Commission, which filed a separate civil lawsuit.

This sentencing follows Alexandre’s guilty plea earlier in February 2023, where he admitted to the fraudulent scheme. The case serves as a warning to cryptocurrency executives and investors alike, emphasizing the Southern District of New York’s commitment to prosecuting misconduct in the crypto markets.

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Crypto CEO Arrested in New York for Wire Fraud Offences

Eddy Alexandre, the founder and Chief Executive Officer of EminiFx, has been arrested by law enforcement agents as he faces charges bothering on one count each of commodities and wire fraud respectively.


Per a press release from the Department of Justice, Alexandre reportedly operated a crypto trading platform as well as a Forex brokerage, an outfit through which he solicited funds from investors.

The funds that have been accrued by Alexandre as of May 2022 were pegged at about $59 million. Investors entrusted their funds into his hands-on grounds that they will be earning at least a 5% interest on a weekly basis. While the subscription to this unachievable scheme was prominent, Alexandre has refused to meet his end of the bargain for all of the featured investors who subscribed to his trading secret.

“Eddy Alexandre allegedly induced his clients to invest over $59 million with promises of huge passive income returns via his own proprietary trading platform called EminiFx,” said U.S. Attorney Damian Williams.

“In reality, no such technology existed, as Alexandre is alleged to have invested very little of their money – most of which he lost – and transferred most of it to his own personal accounts to pay for luxury items for himself.  As in any financial market, foreign exchanges offer high return potential, but investors should be aware of the downside risks of false claims and get rich quick schemes that oftentimes are too good to be true.” 

As highlighted by Williams, the losses that Alexandre accrued sum up to about $6 million, and adequate information was not properly communicated to the authorities.

By the literal definitions of the maximum sentences attached to the offences, Alexandre stands the risk of going behind bars for 30 years. However, the DOJ, said the final decision will be decided by a judge, as is unique with every DOJ-sponsored crypto enforcement action.

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