A recent ruling from a federal court in New York has affected the international cryptocurrency investment platform EminiFX, declared a Ponzi scheme. Founder Eddy Alexandre is now required to pay over $228 million in restitution.
Court Declaration of Fraud
According to the ruling issued by Judge Valerie Caproni, Eddy Alexandre was found guilty of fraud after pleading guilty in a separate criminal case. He is already serving a nine-year sentence after admitting to commodities fraud in 2023.
Financial Losses and Operational Mechanism
Investigations revealed that the company suffered losses of at least $49 million and operated by recycling new investor funds to pay existing participants. Alexandre also withdrew at least $15 million for personal needs, including luxury car purchases and credit payments.
Future of Investor Fund Recovery
A receiver has been appointed to trace and recover funds linked to EminiFX since 2022. Earlier this year, the first round of recovered funds was returned to investors following an approved judicial distribution plan.
The conclusion of the civil case brings significant clarity to one of the most prominent fraud cases in the cryptocurrency sphere over the past three years, with ongoing efforts to recover lost funds for thousands of investors.
