A federal choose in New York ordered Eddy Alexandre, founding father of the collapsed crypto platform EminiFX, to pay greater than $228 million in restitution after ruling the corporate was a Ponzi scheme that defrauded tens of 1000’s of buyers.
The US Commodity Futures Buying and selling Fee (CFTC) secured a abstract judgment towards Alexandre and EminiFX, with US District Choose Valerie Caproni holding them collectively chargeable for greater than $228 million in restitution and an extra $15 million in disgorgement, according to a Tuesday courtroom submitting.
“Defendants Alexandre and EminiFX are collectively and severally liable to pay restitution within the complete quantity of $228,576,962,” the courtroom dominated. “Defendant Alexandre is liable to pay disgorgement within the quantity of $15,049,500.”
The ruling comes greater than three years after Alexandre was first charged and greater than a yr after he pleaded guilty in a parallel criminal case.
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EminiFX raised $262 million on faux robo-trading claims
EminiFX launched in 2021 and rapidly attracted over 25,000 buyers, elevating greater than $262 million in simply eight months. The corporate promised weekly returns of 5% to 9.99% by means of a so-called “Robo-Advisor Assisted Account” that allegedly deployed automated buying and selling methods in crypto and foreign exchange markets.
In actuality, courtroom filings present the platform sustained internet losses of a minimum of $49 million and by no means deployed the expertise it marketed.
In accordance with investigators, Alexandre siphoned off a minimum of $15 million for private use, funding bank card payments, luxurious vehicles and money withdrawals. In the meantime, investor withdrawals have been paid out utilizing commingled funds from new individuals.
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Court docket sentences EminiFX founder to 9 years
Alexandre’s downfall started in Might 2022 when prosecutors and the CFTC filed parallel actions. Within the felony case, he admitted to commodities fraud and was sentenced to 9 years in jail, together with a $213 million restitution order.
The civil case, now concluded with Caproni’s order, provides a parallel restitution and disgorgement mandate, although any funds towards restitution “shall offset his disgorgement obligation,” per the courtroom ruling.
The court-appointed receiver, who has been overseeing the restoration and distribution of property since 2022, started paying out recovered funds to victims earlier this yr after a distribution plan was permitted in January.
Losses from crypto hacks, scams and exploits reached $2.47 billion in the first half of 2025, in response to CertiK. Whereas Q2 noticed $800 million misplaced throughout 144 incidents, a 52% drop in worth and 59 fewer hacks in comparison with Q1, the yr’s complete to date is already up nearly 3% from 2024.
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