EminiFX Founder Ordered to Pay $228 Million for Cryptocurrency Fraud
In a significant development, a New York federal judge has mandated Eddy Alexandre, the mastermind behind the defunct cryptocurrency initiative EminiFX, to pay $228 million in restitution. This comes as a consequence of his role in a Ponzi scheme that deceived thousands of investors, marking a critical moment in the ongoing saga of cryptocurrency fraud.
EminiFX Founder Faces Major Financial Penalties
On August 19, US District Judge Valerie Caproni delivered a decisive ruling. The court ordered Alexandre and EminiFX to jointly pay $228,576,962 in restitution. Additionally, Alexandre is required to pay $15,049,500 in disgorgement. The US Commodity Futures Trading Commission (CFTC) achieved this summary judgment over three years after the initial charges. In a separate criminal case in 2023, Alexandre admitted to committing commodities fraud.
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The Rise and Fall of EminiFX
Established in 2021, EminiFX quickly amassed over $262 million, attracting more than 25,000 investors eager for rapid returns. The platform falsely promised weekly returns ranging from 5% to 9.99% through its so-called “Robo-Advisor Assisted Account,” which purportedly employed automated trading strategies in crypto and forex markets.
However, court documents revealed that EminiFX incurred net losses exceeding $49 million and failed to implement the advertised trading technology. Investigators discovered that Alexandre misappropriated at least $15 million for personal expenses, including luxury items and cash withdrawals. Investor payouts were financed by new participant funds, a hallmark of Ponzi schemes.
Judge Caproni’s order concludes the EminiFX case, requiring Alexandre to repay $228 million in restitution. Notably, any restitution payments will reduce his disgorgement obligation.
A Surge in Cryptocurrency Scams
Despite increasingly stringent regulations and improved security measures, the cryptocurrency sector remains vulnerable to scams and fraud. In May 2025, law enforcement in Wellington, New Zealand, detained an individual linked to a $265 million crypto scam.
In April, Brazilian authorities sentenced the leader of a crypto Ponzi scheme to 128 years in prison. This scheme promised investors guaranteed monthly returns of 8%.
Alarmingly, a report from earlier this month highlighted a staggering $3.1 billion in losses due to hacks in the cryptocurrency industry during the first half of 2025. This reflects a near 100% increase compared to the same period in 2024.
Moreover, US prosecutors in Nevada charged a Las Vegas business owner with involvement in a multimillion-dollar crypto fraud earlier this year.
Current Bitcoin Market Trends
As of now, Bitcoin is trading at $114,242, reflecting a modest 0.2% increase over the past 24 hours.
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