EminiFX Founder Ordered to Repay $228 Million in Crypto Ponzi Scheme Ruling

A federal judge in New York has ordered Eddy Alexandre, founder of the defunct cryptocurrency platform EminiFX, to pay $228 million in restitution for orchestrating a Ponzi scheme that defrauded tens of thousands of investors. The ruling, issued by US District Judge Valerie Caproni, also mandates $15 million in disgorgement.

EminiFX, launched in 2021, raised over $262 million in just eight months, attracting more than 25,000 investors with promises of weekly returns between 5% and 9.99%. The platform claimed its "Robo-Advisor Assisted Account" used automated strategies for trading crypto and forex markets. Court filings revealed the scheme incurred net losses of at least $49 million.

The Commodity Futures Trading Commission secured the judgment three years after Alexandre was first charged. In a separate criminal case, he pleaded guilty to commodities fraud. The case underscores regulatory scrutiny of high-yield crypto investment schemes.