Federal Judge Slams EminiFX as $228M Ponzi Scheme - Massive Restitution Ordered
Another day, another crypto scam gets the hammer—this time it's EminiFX facing a federal reckoning.
The $228M Punch
A judge just ordered EminiFX to cough up $228 million in restitution after declaring the operation a full-blown Ponzi scheme. That’s not pocket change—even by crypto standards.
How It Unraveled
Promised sky-high returns? Delivered classic Ponzi payouts instead—using new investor funds to pay old ones. The whole house of cards collapsed when withdrawals stalled and regulators stepped in.
Finance’s Fine Print
Because nothing says 'trustworthy' like a platform guaranteeing weekly returns without actually trading anything—just another reminder that if it sounds too good to be true, it’s probably a Ponzi. The irony? Some folks still fall for it.
Bottom line: due diligence beats desperation every time. Always know where your money’s going—or watch it disappear.
Church Ties and Crypto Lies
The order, issued by US District Judge Valerie Caproni, comes more than three years after Alexandre was first charged and follows his guilty plea in a separate criminal case. Alexandre is already serving a nine-year prison sentence after admitting to commodities fraud in 2023 and swindling almost $250 million from over 25,000 investors.
EminiFX was launched in 2021. Many of Alexandre’s investors came from his own circles, as he used his influence in the church and Haitian community to win trust and even enlisted fellow members to recruit participants.
The platform promised steady weekly profits ranging between 5% and 9.99% and promoted what it described as a “Robo-Advisor Assisted Account,” which was allegedly capable of generating consistent returns in cryptocurrency and foreign exchange markets through automated trading. Within just eight months, the platform raised about $262 million.
Court filings show, however, that the promised technology never existed.
Eddy Alexandre’s Fall
Investigators found 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 expenses, which included luxury cars, credit card payments, and cash withdrawals.
Regulatory action intensified in May 2022, when prosecutors and the CFTC filed parallel cases against Alexandre. The criminal proceeding concluded with a prison term and a $213 million restitution order. The latest civil ruling adds further financial penalties but clarifies that any restitution payments made will offset his disgorgement obligation.
A receiver appointed by the court has been working since 2022 to trace and recover funds linked to EminiFX. Earlier this year, the first round of recovered money was returned to investors after a distribution plan received judicial approval.
The conclusion of the civil case brings additional clarity to one of the most prominent crypto frauds of the past three years, while recovery efforts continue for thousands of investors who lost funds in the scheme.
