Luxury Wristwatches and Cash: EminiFX Scam Exposed

A U.S. federal court has ordered Eddy Alexandre, the founder of the defunct crypto platform EminiFX, to pay over $228 million in restitution after the court ruled that the company operated as a Ponzi scheme. The judgment, issued by U.S. District Judge Valerie Caproni, also mandated that Alexandre pay an additional $15 million in disgorgement, making the total liability for Alexandre and EminiFX exceed $243 million. The ruling followed a summary judgment secured by the U.S. Commodity Futures Trading Commission (CFTC) against both Alexandre and EminiFX. The court found them jointly and severally liable for the losses incurred by tens of thousands of investors who were misled by the firm’s false claims about its trading capabilities and returns.

EminiFX launched in 2021 and rapidly attracted over 25,000 investors, raising more than $262 million in just eight months by offering weekly returns of 5% to 9.99% through a so-called “Robo-Advisor Assisted Account.” However, internal records and investigations revealed that the firm never deployed the automated trading technology it advertised. Instead, the platform operated with net losses of at least $49 million and functioned as a classic Ponzi scheme, where early investors were paid using funds from new participants. Alexandre was found to have siphoned off at least $15 million for personal use, including luxury cars, credit card expenses, and cash withdrawals.

The judicial proceedings against Alexandre began in May 2022, when the CFTC and prosecutors filed parallel civil and criminal actions. In a related criminal case, Alexandre pleaded guilty to commodities fraud in 2023 and was sentenced to nine years in prison, along with an additional $213 million restitution order. The recent civil ruling adds a separate restitution and disgorgement mandate. Importantly, the court specified that any payments made toward restitution would reduce Alexandre’s obligation to disgorge funds.

In addition to the financial penalties, the court has compelled Alexandre to turn over various assets, including two luxury watches valued at over $500,000 and $5 million in unaccounted cash deposits from EminiFX users. Alexandre is also required to provide access to his Gmail account and a personal laptop to the court-appointed receiver overseeing asset recovery. Failure to comply with these orders could result in civil contempt, including potential incarceration that would not count toward his criminal sentence.

The case highlights the growing regulatory and legal scrutiny of the cryptocurrency sector, particularly platforms that promise high returns without transparent operations. EminiFX’s collapse adds to a broader trend of enforcement actions in the U.S. against fraudulent crypto schemes. According to CertiK, losses from crypto-related hacks, scams, and exploits reached $2.47 billion in the first half of 2025. While the second quarter saw a decline in both the number of incidents and value lost compared to the first, the year-to-date total remains higher than the same period in 2024. The EminiFX case serves as another example of the consequences of deceptive practices in an industry increasingly under regulatory microscope.

A court-appointed receiver has been managing the distribution of recovered assets since 2022, with a formal distribution plan approved in January 2025. Investors began receiving compensation earlier this year. The EminiFX case underscores the importance of due diligence in the crypto space and the need for investors to remain wary of platforms offering unusually high returns without verifiable operations or regulatory compliance.

Source: [1] EminiFX founder to pay $228M in Ponzi scheme ruling (https://cointelegraph.com/news/court-orders-eminifx-founder-repay-228m-ponzi-scheme) [2] 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/) [3] EminiFX crypto fraud (https://www.courthousenews.com/eminifx-crypto-fraud/) [4] US Judge Orders EminiFX Founder To Pay $228 Million Over Ponzi Scheme (https://financefeeds.com/us-judge-orders-eminifx-founder-to-pay-228-million-over-ponzi-scheme/)