Yesterday, a federal judge in New York ordered Eddy Alexandre, founder of the now-defunct cryptocurrency platform EminiFX, to pay $228 million in restitution for orchestrating a Ponzi scheme that defrauded tens of thousands of investors. EminiFX CEO To Pay $228 Million In Restitution According to a court filing published on August 19, US District Judge Valerie Caproni ruled that Alexandre and EminiFX must repay $228 million in restitution along with $15 million in disgorgement. The ruling stated: Defendants Alexandre and EminiFX are jointly and severally liable to pay restitution in the total amount of $228,576,962. Defendant Alexandre is liable to pay disgorgement in the amount of $15,049,500. The US Commodity Futures Trading Commission (CFTC) secured the summary judgment more than three years after Alexandre was first charged. In a separate 2023 criminal case, the former entrepreneur pleaded guilty to commodities fraud. For background, EminiFX was founded in 2021, raising over $262 million in just about eight months. In the same duration, the platform attracted more than 25,000 investors looking for quick returns. The platform claimed it could deliver 5% to 9.99% in weekly returns through a so-called “Robo-Advisor Assisted Account.” This account allegedly relied on automated strategies for trading in crypto and forex markets. Court filings revealed that EminiFX suffered net losses of at least $49 million. The platform also never deployed the trading technology it advertised to investors. Investigators found that Alexandre diverted at least $15 million for personal use, covering credit card bills, luxury cars, and cash withdrawals. At the same time, investor payouts were funded with money from new participants, a classic trait of Ponzi schemes. Judge Caproni’s order finally brings the EminiFX case to a close, requiring Alexandre to pay $228 million in restitution. The order also states that any payments toward restitution will offset his disgorgement obligation. Crypto Scams On A Steady Rise Despite tighter regulations and enhanced security measures, scams and fraud continue to plague the crypto industry. In May 2025, law authorities arrested an individual from Wellington, New Zealand, for association with a $265 million crypto scam. A month earlier, a Brazilian court punished a leader of a crypto Ponzi scheme syndicate by sentencing him to 128 years in prison. The Ponzi scheme promised its investors guaranteed returns of 8% per month. A report earlier this month noted that the crypto industry lost a whopping $3.1 billion to hacks during the first half of 2025. This is an increase of almost 100% compared to losses incurred during the first half of 2024. Meanwhile, US prosecutors in Nevada indicted a Las Vegas business owner in connection with a multimillion-dollar crypto fraud earlier this year. At press time, BTC trades at $114,242, up 0.2% in the past 24 hours.
