Eddy Alexandre, the alleged CEO of cryptocurrency trading platform EminiFX, has pleaded guilty to commodity fraud in New York District Court and agreed to reimburse millions of dollars to investors who lost money to his “cryptocurrency investment scam.”
Alexandre pleaded guilty to a count of merchandise fraud and will pay more than $248 million in forfeiture and unspecified restitution, the US Department of Justice (DOJ) announced on Feb. 10. Alexandre, who was arrested and charged in May for his role at EminiFX, initially pleaded not guilty but changed his plea on February 10. He faces up to 10 years in prison.
About Eddy Alexandre Fraud Scheme
According to Damian Williams, U.S. Attorney for the Southern District of New York, from around September 2021 to May 2022, Alexander operated a cryptocurrency and forex trading platform and “raised funds from tens of thousands of individual investors.” An investment of over $248 million.”
According to Williams, Eddy Alexandre claimed that EminiFX could generate at least a 5% weekly return, but in reality the CEO didn’t invest “a large portion” of the funds, “and even used a portion for personal purchases.” He promoted EminiFX as a passive income platform , which automates cryptocurrency and foreign currency transactions using secret new technology with a “guaranteed” declared return on investment.
Alexander declined to explain to investors what the technology was, promising they would double their funding within five months. Investors in the program were falsely told that they had received the prescribed 5% yield.
In fact, Eddy Alexandre lost millions of dollars on mutual funds that he didn’t disclose to investors. He also deposited about $14.7 million into his personal bank account and bought a BMW for about $155,000 and paid more for a Mercedes Benz. Despite Alexandre’s scam, some EminiFX investors still support him. A handful of people traveled from abroad to attend hearings in August 2022.
A supporter claimed the case against Alexander was racist. He also faces another civil lawsuit from the Commodity Futures Trading Commission, which is suing Alexander for “fraudulent solicitation and embezzlement” related to cryptocurrency and forex trading.
