EminiFX Founder Ordered to Pay $228.6M in Crypto Ponzi Scheme Restitution

EminiFX founder Eddy Alexandre has been ordered to pay $228.6 million in restitution following his involvement in a massive cryptocurrency Ponzi scheme that defrauded over 25,000 investors of $262 million. The U.S. District Court for the Southern District of New York granted summary judgment to the Commodity Futures Trading Commission (CFTC) in a civil case, confirming Alexandre’s liability after his criminal conviction in July 2023 for commodities fraud [1]. The judgment underscores the legal and financial consequences for operating a fraudulent investment platform in the digital asset space.

Alexandre operated EminiFX under the pretense of an “investment club,” promising guaranteed weekly returns of 5% to 9.99% through a non-existent “robo-assisted advisor” technology. Court documents revealed that the platform lost money in 24 out of 30 weeks of operation, with net losses exceeding $49 million. While Alexandre claimed a high return of 9.98% in one week, the actual return was only 2.28% [1]. This discrepancy highlights the deceptive tactics used to mislead investors into believing in a profitable and technologically advanced system.

Using his position as a pastor and his influence within the Haitian community, Alexandre recruited investors through church networks. Court findings indicated that at least $34 million was siphoned from later investors to pay early participants—a classic hallmark of a Ponzi scheme. In addition to the restitution, Alexandre was found to have personally enriched himself with at least $15 million from investor funds, which he used for luxury purchases including a BMW and a Mercedes-Benz [1]. The civil judgment also requires the disgorgement of an additional $15 million for these personal gains.

The case has broader implications for the crypto industry, as it reflects increased regulatory scrutiny and enforcement efforts. The EminiFX scheme, which operated for just eight months, has left a lasting financial impact on investors. An equity receiver was appointed in January 2025 to manage the distribution of remaining assets [1]. The ruling is likely to encourage lawmakers to tighten crypto regulations and reinforce investor education to prevent similar frauds in the future.

The CFTC’s enforcement actions against Alexandre come amid broader scrutiny of its regulatory practices. In June 2025, crypto exchange Gemini filed a complaint with the CFTC Inspector General, alleging a seven-year “lawfare” campaign based on false whistleblower claims from a former employee [1]. This controversy raises questions about the fairness and transparency of regulatory enforcement in the crypto space. However, the EminiFX case remains a clear example of the legal risks associated with unregulated or improperly managed digital finance platforms.

The EminiFX case serves as a cautionary tale for investors, emphasizing the need for due diligence, financial literacy, and a healthy skepticism toward high-return investment promises. As the crypto industry continues to evolve, the incident underscores the importance of regulatory oversight and the need for investors to be informed about the risks they take.

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[1] CFTC Wins $228M Judgment Against Pastor Who Ran Crypto Ponzi Scheme Promising 5-10% Weekly Returns – https://cryptonews.com/news/cftc-wins-228m-judgment-against-pastor-who-ran-crypto-ponzi-promising-5-10-weekly-returns/