Eddy Alexandre, the purported CEO of cryptocurrency trading platform EminiFX, faces up to 10 years in prison for his involvement in a fraudulent venture. Eddy Alexandre, the purported CEO of cryptocurrency trading platform EminiFX, has pleaded guilty to commodities fraud in New York District Court, agreeing to reimburse investors who lost money as a result of his "cryptocurrency investment scam." millions of dollars.
Alexandre pleaded guilty to one count of commodities fraud and will pay more than $248 million in forfeiture and unspecified restitution, the U.S. Department of Justice (DOJ) announced Feb. 10.
Alexandre, who was arrested and charged in May for his role in EminiFX, initially pleaded not guilty but changed his plea on Feb. 10. He faces up to 10 years in prison.
According to Damian Williams, U.S. Attorney for the Southern District of New York, from about September 2021 to May 2022, Alexander operated a cryptocurrency and foreign exchange trading platform and "raised more than $248 million investment.”
Williams said Alexandre claimed EminiFX could provide “at least 5% weekly returns,” but in reality, the CEO didn’t invest “a large portion” of the money and “even spent some on personal purchases.”
He touted EminiFX as a passive income platform that uses secret new technology to automate cryptocurrency and foreign currency trading with a “guaranteed” stated return on investment.
Alexander declined to explain to investors what the technology was, promising they would double their funding within five months. Investors in the scheme were incorrectly given information that they had received the stipulated 5% return.
In fact, Alexander lost millions of dollars on the money he invested -- something he didn't disclose to investors.
He also deposited about $14.7 million into his personal bank account and bought a BMW for about $155,000 and paid more for a Mercedes Benz.
Despite Alexandre's fraud, some EminiFX investors still support him. A small number of people traveled from abroad to attend plea hearings in August, Bloomberg reported on Aug. 10. One supporter claimed the case against Alexander was racist.
He also faces another civil lawsuit from the Commodity Futures Trading Commission, which is suing Alexander for "fraudulent solicitation and misappropriation" related to cryptocurrency and foreign exchange trading.
