Crypto Scam Architect Forced to Surrender Wristwatches, $5M in Cash for Victims

Federal Judge Valerie Caproni 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 of more than $248 million. The ruling, issued on August 19, 2025, follows the CFTC's civil enforcement action and Alexandre's July 2023 criminal sentencing to nine years in federal prison. The CFTC's summary judgment was granted after Alexandre failed to dispute the fraud allegations in the civil case, and the court applied the doctrine of collateral estoppel, which bars re-litigation of previously decided issues. Judge Caproni added $15 million in disgorgement to the restitution, bringing the total amount to be paid by Alexandre and EminiFX to $228.5 million. The CFTC based its calculation on the difference between investor contributions and withdrawals, reflecting the scale of the deception.

The scheme operated between September 2021 and May 2022 and was marketed as a legitimate trading platform that used a "trade secret" technology called "Robo-Advisor Assisted Account (RA3)" to generate guaranteed weekly returns of 5% to 9.99%. However, prosecutors revealed that EminiFX lost money in 24 out of its 30 weeks of operation, and even in its best-performing week, the actual return was only 2.28%. Alexandre used his position of trust in Long Island's Haitian community and his church congregation to recruit a large number of victims, leveraging their trust for financial gain. The CFTC highlighted that the platform did not register as a commodity pool operator (CPO) as required under the Commodity Exchange Act (CEA), and Alexandre failed to register as an associated person (AP) of a CPO.

A court-appointed receiver has been overseeing asset recovery since January 2025 and has already begun distributing recovered funds to defrauded investors. In its efforts to recover assets, the receiver obtained a court order compelling Alexandre to surrender personal luxury items, including two high-end watches and $5 million in unaccounted cash. The court also required Alexandre to provide access credentials to his laptop and Gmail account for further investigation into potential fraud. Failure to comply with the order could result in Alexandre being held in civil contempt, with possible incarceration not counted toward his criminal sentence.

The case underscores the growing sophistication and scale of financial fraud in the crypto space, particularly in the use of high-tech buzzwords and promises of unrealistic returns to lure victims. As noted by legal expert Even Alex Chandra, investor education is crucial in protecting vulnerable groups from such schemes. The CFTC and other regulatory bodies continue to emphasize the need for rigorous verification of investment opportunities promising outsized returns, especially in the crypto and forex markets.

The legal proceedings also highlight the evolving regulatory landscape for crypto assets in the U.S. State securities regulators, through the North American Securities Administrators Association (NASAA), have been actively involved in shaping federal and state-level policies. NASAA recently urged Congress to preserve state antifraud enforcement authority in the context of proposed federal legislation, such as the Digital Asset Market Clarity Act of 2025 and the Responsible Financial Innovation Act. The association emphasized the importance of maintaining a broad interpretation of the Howey test, which is used to determine whether an arrangement constitutes an "investment contract" and thus a security. This flexibility is essential for effective fraud investigations and enforcement.

Source: [1] title1 (https://fxnewsgroup.com/forex-news/retail-forex/eminifx-receiver-secures-court-order-compelling-eddy-alexandre-to-turn-over-assets/) [2] title2 (https://decrypt.co/335968/cftc-wins-summary-judgment-228m-crypto-ponzi-case) [3] title3 (https://globalinitiative.net/analysis/cyber-scam-operations-southeast-asia/) [4] title4 (https://www.straitstimes.com/business/us-seizes-crypto-linked-to-southeast-asian-investment-scam) [5] title5 (https://www.sidley.com/en/insights/newsupdates/2025/08/state-securities-regulators-stake-a-claim-in-crypto-asset-markets)