Crypto, forex platform CEO pleads guilty in $248M fraud scheme

Eddy Alexandre, CEO of purported crypto trading level EminiFX has pleaded blameworthy to commodities fraud successful a New York territory court, agreeing to wage backmost millions to investors who mislaid funds to his "cryptocurrency concern scam.

The United States Department of Justice (DOJ) announced connected Feb. 10 that Alexandre submitted a blameworthy plea to 1 number of commodities fraud, and volition wage implicit $248 cardinal successful forfeiture on with restitution yet to beryllium specified.

Alexandre was arrested and charged successful May 2022 implicit his relation successful EminiFX and primitively pleaded not guilty, but changed his plea connected Feb. 10. He besides faces a maximum condemnation of 10 years successful prison.

An representation of Alexandre appearing successful an April 2022 video for EminiFX. Image: DOJ

According to U.S. Attorney for the Southern District of New York, Damian Williams, from astir September 2021 to May 2022, Alexandre ran the crypto and forex trading level and “solicited much than $248 cardinal successful investments from tens of thousands of idiosyncratic investors.”

Williams said Alexandre purported EminiFX could springiness “weekly returns of astatine slightest 5%” but successful reality, the CEO didn’t put a “substantial portion” of the funds and “even utilized immoderate funds for idiosyncratic purchases.”

He touted EminiFX arsenic a level for passive income that utilized a concealed caller exertion to automate trading successful crypto and overseas currencies that “guaranteed” the stated returns connected investment.

Alexandre refused to authorities to investors what the exertion was and promised they would treble their wealth wrong 5 months. Investors successful the strategy were falsely presented with accusation that they had earned the stated 5% returns.

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In reality, Alexandre lost millions of dollars connected the funds helium did put — which helium didn’t disclose to investors.

He besides directed astir $14.7 cardinal to his idiosyncratic slope relationship and utilized astir $155,000 to bargain a BMW and much connected payments to a Mercedes Benz.

Some of the EminiFX investors were supportive of Alexandre contempt the fraud helium committed.

A fistful traveled from overseas to be an August 2022 plea proceeding according to an Aug. 10 Bloomberg report. One protagonist claimed the lawsuit against Alexandre was racist.

He besides faces a abstracted civilian suit from the Commodity Futures Trading Commission (CFTC) which is suing Alexandre for “fraudulent solicitation and misappropriation” relating to crypto and overseas speech trading.