Table of Contents
EminiFX Founder Ordered to Repay $228.5 Million to Investors
Eddy Alexandre, the founder of the now-defunct cryptocurrency platform EminiFX, has been mandated by a New York federal court to repay a staggering US$228.5 million (AU$351.7 million) to investors who fell victim to his extensive Ponzi scheme. This ruling follows Alexandre’s nine-year sentence in federal prison for his involvement in the fraudulent operations of EminiFX.
Court Ruling and Financial Penalties
The order stemmed from a civil enforcement action led by the US Commodity Futures Trading Commission (CFTC), which sought summary judgment against Alexandre. US District Judge Valerie Caproni granted this request, as Alexandre did not dispute the fraud allegations. Alongside the restitution, the court also imposed an additional US$15 million (AU$23.1 million) in disgorgement on Alexandre, which will be reduced by any restitution payments made.
Collapse of EminiFX
Launched in 2021, EminiFX quickly attracted over 25,000 investors, amassing more than US$262 million (AU$403.4 million) in deposits. The platform promised unrealistically high weekly returns ranging between 5% and 9.99% through a scheme marketed as a "Robo-Advisor Assisted Account," claiming to utilise automated trading strategies in cryptocurrency and forex markets.
However, the reality was starkly different. In the eight months it operated, EminiFX sustained net losses of approximately US$49 million (AU$75.5 million). The funds paid out to investors came directly from new deposits, a classic indicator of a Ponzi scheme. Investigators found that Alexandre misappropriated at least US$15 million (AU$23.1 million) for personal expenditures, including luxury cars, credit card bills, and cash withdraws.
US Attorney Damian Williams described Alexandre’s actions as “brazen,” highlighting his exploitation of trust within the church and Haitian community for investor recruitment.
Future Developments and Lessons Learned
An equity receiver appointed by the court is currently overseeing the recovery of assets, with plans to begin distributing funds to the defrauded investors starting January 2025. Legal experts stress that high-tech labels, like those associated with cryptocurrency or artificial intelligence, do not provide immunity from fraud, emphasising the importance of thorough due diligence and investor education.
The EminiFX case reflects a growing concern regarding scams in the cryptocurrency space. According to blockchain security analytics firm CertiK, losses attributed to hacks, scams, and exploits reached US$2.47 billion (AU$3.8 billion) in just the first half of 2025.
In summary, the EminiFX scandal serves as a crucial reminder for investors to exercise prudence, especially in sectors known for high volatility and risk, and reinforces the necessity for regulatory vigilance in safeguarding the integrity of the financial markets.
