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

EminiFX CEO, Eddy Alexandre, sentenced to nine years in prison for a $240 million fraud scheme, promising high returns through cryptocurrency and forex trading but failing to deliver.

Key Points

  • EminiFX CEO, Eddy Alexandre, gets nine-year prison sentence for a $240 million fraud scheme, targeting 25,000 investors.
  • Alexandre promised 5% weekly returns through a “Robo-Advisor Assisted account” in cryptocurrency and forex trading but failed to deliver.
  • He redirected millions to personal accounts, including buying a BMW with investor funds.
  • The case serves as a warning about risks in cryptocurrency investments and highlights the need for due diligence.

Eddy Alexandre, the CEO of cryptocurrency and forex trading platform EminiFX, has been sentenced to nine years in prison for orchestrating a massive $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.

The Fraudulent Scheme

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

However, the reality was far from the promises made. EminiFX failed to generate the 5% weekly returns for its investors, and it was discovered that Alexandre did not invest a significant portion of the funds entrusted to him. Even worse, he incurred millions of dollars in losses on the limited funds he did invest. Additionally, he redirected 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 serves as a stark reminder of the risks associated with cryptocurrency investments and highlights the importance of due diligence and skepticism towards promises of guaranteed high returns.

Sentencing and Restitution

In addition to his prison term, Alexandre has been sentenced to three years of supervised release. He has also been 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, with Assistant U.S. Attorneys Nicholas Folly and Jared Lenow leading the prosecution. The investigation involved collaboration with the Federal Bureau of Investigation and the Commodity Futures Trading Commission, which filed a separate civil lawsuit.

End Point

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