U.S. Judge Confirms EminiFX as Ponzi Scheme, Orders $228M Restitution
Federal court rules EminiFX was a Ponzi scheme, ordering $228M in restitution as founder Eddy Alexandre serves prison time.
A New York federal court has officially declared EminiFX, the failed cryptocurrency investment platform, a Ponzi scheme, ordering its founder, Eddy Alexandre, to pay more than $228 million in restitution alongside $15 million in disgorgement. The ruling, issued by U.S. District Judge Valerie Caproni, follows Alexandre’s earlier guilty plea to commodities fraud and adds another chapter to one of the most notorious crypto fraud cases in recent years.
Launched in 2021, EminiFX claimed to leverage proprietary automated trading technology—dubbed the“Robo-Advisor Assisted Account”—to generate steady weekly profits of 5% to 9.99% in both cryptocurrency and foreign exchange markets. Within just eight months, the platform attracted more than 25,000 investors and raised approximately $262 million.
But court filings reveal that the technology was a fabrication. Instead, EminiFX recycled new investor deposits to pay earlier participants, while suffering actual trading losses of at least $49 million. Investigators further uncovered that Alexandre diverted at least $15 million for personal use, including luxury cars, credit card payments, and substantial cash withdrawals.
“EminiFX never had the capacity to deliver the profits it promised,” the court noted, emphasizing the fraudulent structure at the heart of the platform.
Alexandre’s recruitment strategy played a key role in the scheme’s expansion. He leveraged his connections within his church and the Haitian community to build trust and encouraged members to enlist others. The approach allowed the platform to spread rapidly before regulators intervened in 2022.
In May 2022, prosecutors and the U.S. Commodity Futures Trading Commission (CFTC) filed parallel actions against Alexandre. The criminal proceedings resulted in a nine-year prison sentence and a $213 million restitution order. The latest civil judgment reinforces the financial penalties, while clarifying that restitution payments will count toward Alexandre’s disgorgement obligations.
A court-appointed receiver has been working since 2022 to track and recover funds. Earlier this year, the first round of distributions was returned to defrauded investors, marking partial progress in what remains a lengthy recovery process.
The EminiFX saga underscores the risks of unregulated crypto schemes and the vulnerability of retail investors to promises of guaranteed returns. With Alexandre now behind bars and the civil case concluded, attention shifts to the recovery process—though many victims may only see a fraction of their investments restored.
The ruling adds weight to broader regulatory efforts to curb fraud in digital asset markets, highlighting the continued tension between innovation and investor protection in the crypto space.
