- Eddy Alexandre has changed his plea to guilty for his involvement in the $248 million EminiFx Ponzi Scheme.
- EminiFX was a crypto and foreign exchange trading platform that promised 5% weekly returns for investors.
- Alexandre could face up to ten years in prison and a fine of up to $1 million when he is sentenced in July.
Eddy Alexandre, CEO of the New York-based trading and investment platform EminiFX, has pleaded guilty to commodities fraud and his role in driving a $248 million Ponzi Scheme.
EminiFX CEO Pleads Guilty to Involvement in Ponzi Scheme
The United States Department of Justice has reported that Eddy Alexandre has issued a guilty plea in connection with the trading of cryptocurrencies and foreign currencies, which turned out to be a Ponzi Scheme.
The guilty plea means Alexandre has agreed to forfeit the $249 million he amassed from thousands of users operating EminiFX. The trading platform had promised a 5% weekly profit and double investments in five months.
EminiFX was operational between September 2021 and May 2022. Alexander, 50, a long-time cybersecurity engineer, now faces up to 10 years in prison and a fine of between $40,000 to $1 million when he is sentenced on July 12th.
What Happened with EminiFX?
Before being busted, EminiFX was marketed as a cryptocurrency and forex trading platform. EminiFX promised investors a “guaranteed return of 5%” weekly through automated investments on the platform.
However, CEO Eddy Alexandre never invested a significant amount of the money and even employed some of the “funds for personal purchases,” including a transfer of approximately $14.7 million to his account.
Following his initial arrest in May 2022, Eddy Alexandre pleaded not guilty. In addition to the current case, the CFTC has filed that he was involved in “fraudulent solicitation and misappropriation” of funds for trading.
Hacks and Scams, the Plague of Crypto
Most scams thrive because they offer too-good-to-be-true investment opportunities. For example, while staking across exchanges usually offer an annual percentage yield between 3%-7%, EminiFX offered a similar return in a week and 100% in five months.
The unsustainable profit promised is one way you can spot a crypto scam. Another is the lack of a clear path for profits, like EminiFX stating its profits were made from an automatic trading bot.
On the Flipside
- When Alexandre was arrested in 2022, the DOJ reported he solicited more than $59 million in investments.
- However, it is unclear how the funds quintupled from $59 million to $249 million if there were no investments made.
Why You Should Care
The case of EminiFX and Eddy Alexandre adds to the increasing number of hacks and scams plaguing the crypto industry and how investors pursue quick profits.
Read about other Ponzi Schemes busted by the DOJ in:
U.S. Justice Department Charges Nine Individuals with Running Crypto Ponzi Schemes
Find solutions to scams below:
How to Spot a Crypto Rug Pull Scam
Credit: Source link
