Judge Mandates $228M Repayment After EminiFX Ponzi Scheme Unravels

New York federal judge Valerie E. Caproni has mandated that Eddy Alexandre, founder of the collapsed cryptocurrency platform EminiFX, repay $228.57 million in restitution to defrauded investors, with an additional $15.04 million in disgorgement, following a court ruling that the company operated as a Ponzi scheme. The order, issued on August 19, 2025, stems from a civil case brought by the U.S. Commodity Futures Trading Commission (CFTC), which accused Alexandre and EminiFX of violating the Commodity Exchange Act (CEA). The court found them jointly and severally liable for the restitution, with Alexandre personally responsible for returning ill-gotten gains. The ruling follows a criminal conviction in which Alexandre admitted to commodities fraud and was sentenced to nine years in prison, alongside a $213 million restitution order, in May 2022 [2].

The CFTC’s case alleged that EminiFX misrepresented its operations by offering “Robo-Advisor Assisted Accounts” that promised weekly returns of 5% to 9.99%, based on automated trading strategies in crypto and forex markets. However, the platform never deployed such technology and instead sustained at least $49 million in net losses. Alexandre reportedly siphoned off at least $15 million of investor funds for personal expenses, including luxury cars, credit card payments, and cash withdrawals. Investor withdrawals were funded using funds from new participants, a hallmark of a Ponzi scheme [2].

Under a separate court order, Alexandre was required to surrender various assets, including two high-end watches purchased with EminiFX deposits totaling $509,986 and $5 million in unaccounted cash. The court also mandated that he provide passwords and credentials to access his laptop and Gmail account, as well as information on missing cash balances and alleged currency fraud [1]. Failure to comply with the court’s directive could result in civil contempt, which carries the risk of incarceration. The receiver appointed by the court has already begun distributing recovered funds to victims after a distribution plan was approved in January 2025 [2].

The EminiFX case highlights the growing risks associated with the fast-evolving crypto market, particularly in the realm of high-yield investment schemes. Alexandre’s downfall began in May 2022 when both prosecutors and the CFTC filed parallel actions against him. The civil case, which concluded in August 2025, further solidified the legal liability of the founder and the company [2].

Losses from crypto scams, exploits, and hacks have continued to mount, reaching $2.47 billion in the first half of 2025 alone, according to CertiK. While the second quarter of 2025 saw a 52% drop in losses compared to the first quarter, the year-to-date total is already up 3% from 2024. The EminiFX case underscores the importance of regulatory vigilance and investor due diligence in the rapidly expanding digital asset sector [2].

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] EminiFX founder to pay $228M in Ponzi scheme ruling (https://cointelegraph.com/news/court-orders-eminifx-founder-repay-228m-ponzi-scheme)

[3] Crypto Fraudster, Fund Liable for $229 Million in CFTC Suit (https://news.bloomberglaw.com/business-and-practice/crypto-fraudster-fund-liable-for-229-million-in-cftc-suit)