Crypto and Forex Platform Founder pleads guilty to $248M fraud scheme

News | February 16, 2023 By:

On Friday, February 10, 2023, Mr. Eddy Alexandre, the leader and founder of EminiFX Inc., a purported Cryptocurrency and Forex Exchange platform, plead guilty to one count of commodities fraud and agreed to pay forfeiture in the amount of $248,829,276.73. 

Allegedly, Mr. Alexandre operated EminiFX nd solicited more than $248 million in investments from thousands of individual investors. Alexandre marketed the EminiFX as an investment platform in which investors can earn passive income through automated investments in cryptocurrency and forex trading. A “guaranteed” high investment return was allegedly offered by Alexandre to his investors using a technology that he claimed was secret. 

Specifically, Alexandre falsely represented to his investors that t they would double their money within five months of investment earning at least 5% weekly returns using what they called a “Robo-Advisor Assisted Account”. This is what Alexandre referring as his “trade secret”. The truth is Alexandre already knew that EminiFX did not earn 5% weekly returns. He didn’t even invest a substantial portion of the investor funds entrusted to him. He misdirected at least $14,700,000 of the money to his personal bank account. 

U.S. Attorney Damian Williams said: “Eddy Alexandre admitted today to luring investors to his cryptocurrency investment scam by fabricating weekly returns of at least 5%.  In reality, Alexandre failed to invest a substantial portion of this investor’s money and even used some funds for personal purchases.  Alexandre’s scam caused investors to lose millions of dollars, and this case should serve as yet another warning to cryptocurrency executives that the Southern District of New York is closely watching and ready to prosecute any and all misconduct in the crypto markets.”

In the Complaint dated May 11, 2022, Joseph Strawman, a Special Agent of the FBI, stated that Alexandre used a series of EminiFC accounts for the misappropriation of the investors’ funds. 

“Based on my review of bank records, I have learned that beginning in or around September 2021, EDDY ALEXANDRE, the defendant opened a series of EminiFX bank accounts that he used to receive approximately $59 million in EminiFX investor deposits. 

The deposits were made in cash in at least approximately 99 different bank branches, as well as through checks, wire transfers, and a digital payment network that allows individuals who have accounts at different banks to send funds to each other.”

In addition to the allegations, Mr. Strawman added that Alexandre used the money for his personal matters such as purchasing a BMW car, donating to charitable organizations, rent and furnishing office space for EminiFX, and holding events on behalf of EminiFX, and paying his legal fees. 

Eddy Alexandre pleads Guilty to these allegations before the Southern District of New York. He greed to pay $248,829,276.73, as well as restitution in an amount to be specified by the Court. The offense as such carries a maximum sentence of 10 years in prison. 

Source: United States Department of Justice