tl;dr
Federal judge orders Eddy Alexandre and EminiFX to pay $228.5 million in restitution for a crypto Ponzi scheme that defrauded over 25,000 investors of $248 million. The scheme promised fictitious weekly returns using fake AI trading technology and targeted the Long Island Haitian community and Alexa...
A federal judge has ordered Eddy Alexandre and his company, EminiFX, to pay $228.5 million in restitution to victims of a crypto Ponzi scheme that swindled more than 25,000 investors out of over $248 million. The scheme promised fictitious weekly returns between 5% and 9.99% by using nonexistent "AI trading technology" and exploiting trust within the Long Island Haitian community and Alexandre’s church congregation.
U.S. District Judge Valerie Caproni granted summary judgment in favor of the Commodity Futures Trading Commission (CFTC) in its civil enforcement action against Alexandre, following his July 2023 criminal sentencing to nine years in federal prison. Alexandre, who operated EminiFX from September 2021 through May 2022, promised “guaranteed” weekly returns through automated crypto and forex trading using a supposed trade secret technology labeled the "Robo-Advisor Assisted Account (RA3)." However, EminiFX lost money in 24 of its 30 weeks, and the reported returns were largely fabricated.
According to court findings, Alexandre admitted that the weekly returns he provided were not based on actual investment performance. Prosecutors revealed he diverted at least $15 million to personal accounts, spending lavishly on luxury cars like BMW and Mercedes-Benz. Alexandre’s guilty plea in his criminal case has prevented him from contesting his liability in the civil matter.
The CFTC set restitution based on investor deposits minus any withdrawals, adding $15 million in disgorgement, offset by restitution payments. An equity receiver appointed by the court has been actively recovering assets, with distributions to defrauded investors underway since January 2025. Despite this progress, the case remains open as recovery efforts continue.
Legal experts emphasize that fraud often lurks behind enticing buzzwords like AI and crypto, urging rigorous verification and investor education, particularly for vulnerable communities with limited financial literacy. U.S. Attorney Damian Williams noted the brazen nature of Alexandre's scheme and his exploitation of deep trust within his community, underscoring the importance of vigilance in the rapidly evolving landscape of high-tech financial products.