Judge Slaps EminiFX’s Eddy Alexandre with $228M Crypto Fraud Penalty - Largest in 2025

Another day, another crypto fraudster gets their comeuppance—this time to the tune of a quarter-billion dollars.

The Hammer Drops

New York federal judge just made an example out of Eddy Alexandre, ordering the EminiFX founder to pay back $228 million to investors he swindled with promises of 5% weekly returns. The judgment ranks among the largest crypto fraud penalties this year—a stark reminder that regulators aren't playing around anymore.

How It Unfolded

Alexandre's scheme collapsed when investors discovered their 'guaranteed' returns were pure fiction. Instead of trading funds as promised, he parked client money in personal accounts and blew millions on luxury cars and real estate. The SEC pounced faster than a Bitcoin whale spotting a dip.

Regulatory Reckoning

This ruling sends shockwaves through DeFi circles—proving that even in the wild west of crypto, old-fashioned fraud still gets you old-fashioned jail time. Alexandre now faces decades in prison when sentenced later this year.

Because apparently in crypto, the only thing growing faster than token valuations are regulatory fines—who said this space lacked traditional financial metrics?

TLDR

• EminiFX founder Eddy Alexandre faces a $228M restitution order for defrauding investors.

• Alexandre siphoned $15M for personal expenses while investors lost millions.

• EminiFX promised high returns but never deployed the automated trading system.

• Alexandre’s civil and criminal cases conclude with substantial financial penalties.

Eddy Alexandre, the founder of the crypto platform EminiFX, has been ordered to pay $228 million in restitution for defrauding thousands of investors. A federal judge in New York made the ruling, determining that EminiFX operated as a Ponzi scheme that misled investors about its business model and trading strategies. The ruling comes after a lengthy legal process, with Alexandre also facing a nine-year prison sentence in a separate criminal case related to the fraud.

The decision, issued by U.S. District Judge Valerie Caproni, comes after the U.S. Commodity Futures Trading Commission (CFTC) successfully argued that Alexandre and his platform defrauded investors of millions of dollars. The court ordered that Alexandre pay the restitution and an additional $15 million in disgorgement.

EminiFX’s Ponzi Scheme

EminiFX, which launched in 2021, quickly attracted over 25,000 investors who believed they were participating in a lucrative trading platform. The company promised returns of 5% to 9.99% per week through a “Robo-Advisor Assisted Account” that supposedly used automated trading strategies in the crypto and forex markets.

However, the platform never deployed the technology it advertised, and in reality, it incurred significant losses.

The CFTC investigation revealed that EminiFX raised over $262 million in just eight months, but sustained net losses of at least $49 million. Alexandre used funds from new investors to pay returns to earlier participants, a hallmark of a Ponzi scheme. Meanwhile, Alexandre personally siphoned off at least $15 million for his own use, which he spent on luxury cars, credit card bills, and cash withdrawals.

Court Ruling and Restitution

The ruling in the civil case follows the criminal case against Alexandre. In 2022, Alexandre pleaded guilty to commodities fraud and was sentenced to nine years in prison. The civil court decision adds to his penalties, requiring him to pay restitution and disgorgement for his actions. According to the court ruling, Alexandre and EminiFX are jointly and severally liable for restitution amounting to $228.57 million, with Alexandre personally responsible for $15 million in disgorgement.

The court-appointed receiver has been overseeing the recovery of assets since 2022. Earlier this year, the receiver began distributing recovered funds to victims as part of an approved distribution plan. The restitution order is designed to compensate victims for their financial losses, although the process of recovering funds is ongoing.

The case of EminiFX is part of a growing trend of scams in the cryptocurrency space. According to CertiK, a blockchain security firm, crypto hacks, scams, and exploits totaled $2.47 billion in losses in the first half of 2025. While the number of incidents dropped in Q2, the total amount lost has already surpassed the previous year.