The Federal Bureau of Investigation (FBI) has arrested Eddy Alexandre, the operator of EminiFX, a crypto trading platform, for his connection to a $59 million fraud. The operator was charged with allegations of a fraud case that victimised many individuals.
As reported by the Department of Justice, the trading platform operator had alleged fraud raking in as high as $59 million from hundreds of investors under the cover of the forex trading platform.
The US Attorney, Damian Williams, issued a statement the previous week describing the actions of the crime. The attorney mentioned that Alexandre solicited the money from his clients to invest in his company while promising them a high return on investment from the company.
However, in reality, the promised proprietary technology by Alexandre never existed, and the investors’ money was transferred to his personal account for luxury items. Alexandre invested a non-substantial amount of the money in his company, which he later lost, leading to a complete loss and exorbitant spending on the investment.
High Risk of Crypto and Forex Fraud
The attorney further emphasised the need for investors to be careful of high-risk investments. Even though such foreign exchanges promise high returns or can return such yields, they are often filled with holes.
In response to the allegation, the Assistant Director of the FBI, “As alleged, Mr. Alexandre solicited millions of dollars from unwitting investors to whom he ‘guaranteed’ weekly returns of 5% through his trading platform using a new technology he refused to disclose.” Michael Driscoll said.
The Assistant Director of the FBI further went on to assure the public of the commitment of the FBI to always go all out in getting criminals like Alexandre and ensuring they have met the full weight of justice. This type of action prevents such criminals from walking scot-free without facing the wrath of the justice system.
From the complaint filed in federal court in Manhattan, Alexandre operated EminiFX, Inc., which was regarded as a crypto investment platform that Alexandre founded. He paraded a false investment scheme that could yield high returns between September 2021 and May 2022.
Alexandre reportedly promised his investors “guaranteed” large investment returns by utilising “secret” technologies. For example, he allegedly promised clients that investing in a “Robo-Advisor Assisted account” would quadruple their money in five months.