Judge Unveils $228M Ponzi Payback Plan for Crypto Victims

A federal judge in New York has ordered Eddy Alexandre, the founder of the collapsed cryptocurrency trading platform EminiFX, to pay $228.58 million in restitution to investors defrauded by a Ponzi scheme. U.S. District Judge Valerie E. Caproni granted the Commodity Futures Trading Commission’s (CFTC) motion for summary judgment, holding Alexandre and EminiFX jointly and severally liable for the losses. Alexandre was also ordered to pay an additional $15.05 million in disgorgement, which will be offset by any restitution payments [2]. The ruling, issued on August 19, 2025, concludes a civil enforcement action following Alexandre’s criminal conviction in July 2024, where he was sentenced to nine years in federal prison and ordered to pay $213 million in restitution [5].

EminiFX operated from September 2021 to May 2022, during which it attracted over 25,000 investors and raised more than $262 million by promising weekly returns of 5% to 9.99% through a purported automated trading system known as the “Robo-Advisor Assisted Account (RA3).” In reality, the platform reported fabricated returns and never implemented the trading technology it claimed. Alexandre admitted in a criminal sentencing letter that the weekly figures he provided were not based on actual investment returns and that the firm sustained net losses in 24 of its 30 weeks of operation [2]. The CFTC alleged that EminiFX and Alexandre violated the Commodity Exchange Act by engaging in fraud, using manipulative devices, and failing to register as a commodity pool operator and associated person, respectively [1].

The judge’s order mandates that Alexandre turn over specific assets and information to the court-appointed receiver, including two luxury watches costing over $500,000, $5 million in unaccounted cash, and details regarding the alleged currency fraud within the platform. Alexandre is also required to provide access to his Gmail account and a laptop in possession of the receiver, with additional safeguards proposed to protect privileged materials during the review process [1]. Alexandre was warned that failure to comply with the order could result in a civil contempt citation, potentially leading to incarceration, which would not count toward his criminal sentence [1]. The receiver has already begun distributing recovered assets to victims after a distribution plan was approved in January 2025 [2].

The case highlights the growing risk of fraudulent schemes in the cryptocurrency and forex sectors, particularly when platforms use high-tech jargon and automated trading promises to attract investors. Alexandre exploited trust within the Haitian community and his church connections to secure investments, using funds from new investors to pay off earlier ones, a hallmark of Ponzi schemes. Investigators also revealed that Alexandre siphoned at least $15 million for personal expenses, including luxury vehicles and credit card payments [2]. The CFTC’s enforcement action, which included both civil and criminal proceedings, underscores the regulatory body’s increasing focus on combating fraud in the rapidly evolving crypto market. U.S. Attorney Damian Williams described Alexandre’s conduct as “brazen,” emphasizing the need for stronger oversight and investor education [5].

The EminiFX case is part of a broader trend of crypto-related fraud, with losses from scams and hacks reaching $2.47 billion in the first half of 2025 alone, according to CertiK. The CFTC’s success in securing a substantial restitution order signals a shift toward more aggressive enforcement against fraudulent operators. Legal experts have noted that while fraud persists—often under the guise of emerging technologies like AI—rigorous verification and transparency are essential for protecting investors. Alexandre’s case also serves as a cautionary example of how fraudulent actors misuse trust and technological claims to defraud large numbers of people, often targeting those with limited financial literacy [5].

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] EminiFX crypto fraud (https://www.courthousenews.com/eminifx-crypto-fraud/)

[4] CFTC Wins $228M Restitution Order Against Ponzi Schemer (https://www.law360.com/articles/2378647/cftc-wins-228m-restitution-order-against-ponzi-schemer)

[5] CFTC Wins Summary Judgment in $228M Crypto Ponzi Case (https://finance.yahoo.com/news/cftc-wins-summary-judgment-228m-070522917.html)