Yesterday, a federal judge in New York ordered Eddy Alexandre, founder of the now-defunct cryptocurrency platform EminiFX, to pay $228 million in restitution for orchestrating a Ponzi scheme that defrauded tens of thousands of investors.
According to a court filing published on August 19, US District Judge Valerie Caproni ruled that Alexandre and EminiFX must repay $228 million in restitution along with $15 million in disgorgement. The ruling stated:
Defendants Alexandre and EminiFX are jointly and severally liable to pay restitution in the total amount of $228,576,962. Defendant Alexandre is liable to pay disgorgement in the amount of $15,049,500.
The US Commodity Futures Trading Commission (CFTC) secured the summary judgment more than three years after Alexandre was first charged. In a separate 2023 criminal case, the former entrepreneur pleaded guilty to commodities fraud.
For background, EminiFX was founded in 2021, raising over $262 million in just about eight months. In the same duration, the platform attracted more than 25,000 investors looking for quick returns.
The platform claimed it could deliver 5% to 9.99% in weekly returns through a so-called “Robo-Advisor Assisted Account.” This account allegedly relied on automated strategies for trading in crypto and forex markets.
Judge Caproni’s order finally brings the EminiFX case to a close, requiring Alexandre to pay $228 million in restitution. The order also states that any payments toward restitution will offset his disgorgement obligation.
