A U.S. court has ruled that Eddy Alexandre, founder of the crypto platform EminiFX, must pay over $228 million for fraudulent actions associated with a Ponzi scheme.
Overview of the EminiFX Case
U.S. District Judge Valerie Caproni has ordered Eddy Alexandre and EminiFX to jointly pay more than $228 million in restitution following a ruling from the Commodity Futures Trading Commission (CFTC).
Financial Manipulations and Losses
Launched in 2021, EminiFX attracted over 25,000 investors and raised more than $262 million with promises of returns between 5% to 9.99%. However, the company sustained net losses of at least $49 million and never utilized the technology it advertised, with Alexandre allegedly siphoning off at least $15 million for personal expenses.
Consequences and Sentencing of Alexandre
Alexandre was sentenced to nine years in prison after pleading guilty to commodities fraud and is also subject to a civil restitution and disgorgement order totaling more than $243 million across cases.
The case against EminiFX highlights serious issues of fraud in the crypto space, emphasizing the necessity for legal compliance and investor protection.
