Crypto Ponzi: EminiFX Founder to Repay $228.5M to Investors
A U.S. federal judge has ordered Eddy Alexandre, founder of the fraudulent EminiFX trading platform, to pay $228.5 million in restitution after authorities determined he defrauded more than 25,000 investors in what they described as a “brazen” crypto Ponzi scheme.
Court Ruling and Restitution Order
On Tuesday, U.S. District Judge Valerie Caproni granted summary judgment in favor of the Commodity Futures Trading Commission (CFTC) in its civil enforcement case against Alexandre.
The restitution figure was calculated based on investor deposits minus withdrawals, with an additional $15 million in disgorgement, offset by future restitution payments.
The ruling comes after Alexandre was sentenced to nine years in prison in July 2024 for commodities and wire fraud linked to EminiFX. Despite representing himself, Alexandre failed to present evidence contesting the CFTC’s claims.
Fraud Wrapped in “AI and Crypto”
Commenting on the case, Alex Chandra, partner at IGNOS Law Alliance, told Decrypt that “Fraud persists, now often cloaked in high-tech buzzwords like AI and crypto. Rigorous verification is essential for ventures promising outsized returns.”
He added that groups with limited financial literacy are especially vulnerable to scams, making investor education a critical safeguard.
U.S. Attorney Damian Williams previously described Alexandre’s conduct as “brazen,” noting he preyed on trust within his church and Haitian community to lure investors.
How the EminiFX Scheme Operated
Alexandre launched EminiFX in September 2021, promoting it as an automated crypto and forex trading platform with a proprietary “Robo-Advisor Assisted Account (RA3)” technology.
He promised guaranteed weekly returns of 5% to 9.99%, but in reality:
- The platform lost money during 24 of its 30 weeks of operation.
- In its best-performing week, Alexandre falsely claimed 9.98% returns, while actual gains were only 2.28%.
- Alexandre admitted in court filings that his reported weekly figures were fabricated.
Prosecutors revealed that he diverted at least $15 million to personal expenses, including luxury cars such as a BMW and a Mercedes-Benz.
Legal Proceedings and Investor Recovery
Alexandre’s guilty plea in the criminal case legally barred him from denying liability in the CFTC’s civil action. The court applied the doctrine of collateral estoppel, preventing him from re-litigating issues already resolved.
An equity receiver appointed by the court has been overseeing recovery efforts since early 2025, with distributions to defrauded investors already underway. The case remains active as authorities continue working to recoup additional funds.
A Warning for Investors
The EminiFX case underscores the risks of unverified crypto investment schemes that leverage trending technologies like AI to attract unsuspecting participants. Experts urge investors to conduct due diligence and remain skeptical of platforms promising “guaranteed returns.”
