Crypto, forex platform CEO pleads guilty to $248 million fraud scheme
Eddy Alexandre, CEO of alleged crypto trading platform EminiFX has pleaded guilty to commodity fraud in a New York District Court and agreed to repay millions to investors who lost funds in his “cryptocurrency investment scam.
The United States Department of Justice (DOJ) announced on February 10 that Alexandre has entered a guilty plea to one count of merchandise fraud and will pay over $248 million in forfeiture along with restitution that has yet to be specified.
Alexandre was arrested and charged in May 2022 for his role in EminiFX and initially pleaded not guilty but changed his plea on 10 February. He also faces a maximum sentence of 10 years in prison.
According to the U.S. Attorney for the Southern District of New York, Damian Williams, from around September 2021 to May 2022, Alexandre operated the crypto and currency trading platform and “solicited more than $248 million in investments from tens of thousands of individual investors.”
Williams said that Alexandre claimed that EminiFX could provide “weekly returns of at least 5%”, but in reality the CEO did not invest a “substantial part” of the funds and “even used some funds for personal purchases.”
He touted EminiFX as a passive income platform that used a secret new technology to automate crypto and foreign currency trading that “guaranteed” the stated return on investment.
Alexandre refused to tell investors what the technology was and promised they would double their money within five months. Investors in the scheme were falsely presented with information that they had earned a stated 5% return.
Related: Crypto exchanges tackle insider trading after recent convictions
In reality, Alexandre lost millions of dollars on the funds he invested – which he did not disclose to investors.
He also sent about $14.7 million to his personal bank account and used about $155,000 to buy a BMW and more on payments for a Mercedes Benz.
Some of the EminiFX investors supported Alexandre despite the fraud he committed.
A handful traveled from overseas to attend an appeals hearing in August 2022, according to an Aug. 10 Bloomberg report. One supporter claimed that the case against Alexandre was racist.
He is also facing a separate civil lawsuit from the Commodity Futures Trading Commission (CFTC) that is suing Alexandre for “fraudulent solicitation and misappropriation” related to crypto and currency trading.
