A federal judge in New York has instructed Eddy Alexandre, the founder of the defunct crypto platform EminiFX, to pay restitution exceeding $228 million after determining that the company operated as a Ponzi scheme that deceived tens of thousands of investors.
The US Commodity Futures Trading Commission (CFTC) attained summary judgment against Alexandre and EminiFX, with US District Judge Valerie Caproni declaring them jointly responsible for over $228 million in restitution and an extra $15 million in disgorgement, as stated in a court filing on Tuesday.
“Defendants Alexandre and EminiFX are jointly and severally responsible for paying restitution totaling $228,576,962,” the court stated. “Defendant Alexandre must pay disgorgement totaling $15,049,500.”
This ruling comes over three years after Alexandre was initially charged and more than a year after he entered a guilty plea in a related criminal case.
A snapshot of the case ruling. Source: CourtListener
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EminiFX raised $262 million on fraudulent robo-trading claims
EminiFX was launched in 2021 and rapidly drew in over 25,000 investors, amassing more than $262 million in just eight months. The company promised weekly returns ranging from 5% to 9.99% via a so-called “Robo-Advisor Assisted Account” that supposedly utilized automated trading strategies in crypto and forex markets.
However, court records reveal the platform incurred net losses of at least $49 million and never employed the advertised technology.
Investigators reported that Alexandre misappropriated at least $15 million for personal expenses, covering credit card bills, luxury vehicles, and cash withdrawals. Investor withdrawals were funded using pooled monies from new participants.
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Court sentences EminiFX founder to nine years in prison
Alexandre’s troubles began in May 2022 when prosecutors and the CFTC initiated parallel actions. In the criminal case, he pleaded guilty to commodities fraud and was sentenced to nine years in prison, along with a restitution order of $213 million.
The civil case, now resolved with Caproni’s order, imposes an additional restitution and disgorgement requirement, although any restitution payments “shall offset his disgorgement obligation,” according to the court ruling.
The court-appointed receiver, who has been managing the recovery and distribution of assets since 2022, began distributing recovered funds to victims earlier this year following the approval of a distribution plan in January.
Losses attributed to cryptocurrency hacks, scams, and exploits amounted to $2.47 billion in the first half of 2025, according to CertiK. Though Q2 experienced $800 million in losses across 144 incidents—a 52% decrease in value and 59 fewer hacks compared to Q1—the total for the year so far has increased by nearly 3% compared to 2024.
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