"Judge Shuts Down Crypto Fraud, Orders $228M Returned to Trust-Exploited Investors"

A federal judge in New York has ordered Eddy Alexandre and his company EminiFX to pay $228.5 million in restitution to victims of a crypto Ponzi scheme that defrauded over 25,000 investors between September 2021 and May 2022. The ruling, issued by U.S. District Judge Valerie Caproni, came in favor of the Commodity Futures Trading Commission (CFTC) in a civil enforcement action. The court described Alexandre’s attempt to dispute the case as "ludicrous," noting that his guilty plea in a criminal case prevents him from re-litigating the same claims [2].

The scheme operated by EminiFX involved the promise of fake weekly returns of 5% to 9.99% through an "AI trading technology" platform known as the "Robo-Advisor Assisted Account (RA3)." In reality, EminiFX lost money in 24 of its 30 weeks of operation, with the highest actual return being 2.28% in its best week. Alexandre admitted in a criminal sentencing letter that the figures he presented were not based on real investment returns [2]. The CFTC also alleged that EminiFX failed to register as a commodity pool operator and that Alexandre did not register as an associated person with the CPO, violating the Commodity Exchange Act (CEA) [1].

Judge Caproni’s ruling included additional $15 million in disgorgement, offsetting the total restitution payments [2]. Alexandre, who operated the scheme from within his own church and the Haitian community on Long Island, exploited his position of trust to attract a large number of investors, many of whom had limited financial literacy. Legal experts have highlighted the broader implications of such fraud, noting that individuals and communities with less experience in financial markets are particularly vulnerable to these types of schemes [2].

The court has already begun distributing recovered funds to victims, with a court-appointed equity receiver overseeing the process since January 2025 [2]. The receiver, appointed to secure and manage Alexandre’s assets, has also obtained a court order compelling Alexandre to turn over specific luxury assets, including two high-value watches, a significant unaccounted cash sum, and information related to a currency fraud within EminiFX [1]. Alexandre faces the risk of civil contempt if he fails to comply, which could lead to incarceration separate from his existing nine-year prison sentence [1].

The case marks a significant win for the CFTC in its ongoing efforts to combat fraud in the fast-evolving crypto and forex markets. The ruling reinforces the principle of “collateral estoppel,” which prevents defendants from re-litigating claims that have already been decided in prior proceedings [2]. Legal observers have emphasized that the case underscores the necessity for rigorous due diligence in ventures that promise unusually high returns, particularly in emerging technologies like AI and cryptocurrency [2].

This case is part of a broader global trend in financial fraud, with similar operations reported in Southeast Asia, where cyber scams and cryptojacking schemes have become increasingly sophisticated. These operations often rely on complex money laundering networks involving mule accounts, crypto exchanges, and decentralized finance (DeFi) applications. The EminiFX case highlights the importance of international collaboration in tracking and disrupting such schemes, particularly given the challenges of tracing funds across borders and digital platforms [6].

Source: [1] EminiFX receiver secures Court order compelling Eddy Alexandre to turn over assets (https://fxnewsgroup.com/forex-news/retail-forex/eminifx-receiver-secures-court-order-compelling-eddy-alexandre-to-turn-over-assets/) [2] CFTC Wins Summary Judgment in $228M Crypto Ponzi Case (https://decrypt.co/335968/cftc-wins-summary-judgment-228m-crypto-ponzi-case) [3] CFTC Wins $228M Restitution Order Against Ponzi Schemer (https://www.law360.com/articles/2378647/cftc-wins-228m-restitution-order-against-ponzi-schemer) [6] The economics of cyber scam operations in Southeast Asia (https://globalinitiative.net/analysis/cyber-scam-operations-southeast-asia/)