Forex Platform CEO Crypto Pleads Guilty to $248 Million Fraud‍

It has been reported that Eddy Alexandre, the CEO of alleged crypto trading platform EminiFX, admitted to committing commodities fraud in a New York district court, and has agreed to reimburse investors millions of dollars for the money they lost due to his “cryptocurrency investment scam.”

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In an announcement published by the United States Department of Justice (DOJ), it was announced on the 10th that Alexandre has pleaded guilty to one count of commodity fraud, and has agreed to forfeit more than $248 million, as well as pay restitution that has not been determined.

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In May 2022, Alexandre was arrested and charged for his role in EminiFX and originally pleaded not guilty to the charges. However, on February 10 of that year, he changed his plea to guilty. A maximum prison sentence of ten years is the maximum punishment that can be imposed on him.

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From approximately September 2021 to May 2022, Alexandre ran a crypto and forex trading platform that he ran and “solicited more than $248 million in investments from tens of thousands of individual investors”, according to U.S. Attorney for the Southern District of New York, Damian Williams.

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During Williams' interview, Alexandre claimed that EminiFX would provide a return of at least 5% on a weekly basis. However, in reality, it turns out that Alexandre didn't invest a "substantial portion" of the funds and even used some of those funds for his personal purchases”.

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EminiFX is described by him as a passive income platform that uses a secret new technology in order to automate crypto and foreign exchange trading, thereby guaranteeing that the stated return on investment will be realized.

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Eddy Alexandre refused to tell investors what the technology was and promised that they would be able to double their money within five months. Investors in this scheme were misled into believing that they had earned the 5% returns that were promised.

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As a result of his investments, Alexandre lost millions of dollars, which he did not disclose to the investors, with regard to the funds he invested.

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A BMW and more Mercedes Benz payments were also made out of the $14.7 million he deposited into his personal bank account.

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There were some EminiFX investors who supported Alexandre despite the fact that he committed fraud.

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There were a couple of individuals who traveled from overseas to attend a plea hearing in August 2022, as reported in the August 10 edition of Trade Algo. One of the supporters claimed that the case against Alexandre was racist.

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Moreover, Alexandre is also facing a civil lawsuit from the Commodity Futures Trading Commission (CFTC), which is suing him for "fraudulent solicitation and embezzlement" related to the crypto and currency markets.