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crypto

Crypto Ponzi Scheme Ruling: EminiFX Founder Ordered To Repay $228 Million

Ash Tiwari
by Ash Tiwari
2 weeks ago
·
Posted in Crypto scam
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

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.

Related Reading: Crypto Podcaster Jailed For 45 Months In Fraud Case – Details

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.

case
Source: CourtListener

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.

Related Reading: Crypto Ponzi Scheme Leader Sentenced To 10 Years By US Court

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.

bitcoin
Bitcoin trades at $114,242 on the daily chart | Source: BTCUSDT on TradingView.com
Featured image from Unsplash.com, chart from TradingView.com
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
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Ash Tiwari

Ash Tiwari

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Ash is a seasoned freelance editor and writer with extensive experience in the blockchain and cryptocurrency industry. Over the course of his career, he has contributed to major publications, playing a key role in shaping informative, timely content related to decentralized finance (DeFi), cryptocurrency trends, and blockchain innovation. His ability to break down complex topics has allowed both seasoned professionals and newcomers to the industry to benefit from his work. Beyond these specific roles, Ash's writing expertise spans a wide array of content, including news updates, long-form analysis, and thought leadership pieces. He has helped multiple platforms maintain high editorial standards, ensuring that articles not only inform but also engage readers through clarity and in-depth research. His work reflects a deep understanding of the rapidly evolving blockchain ecosystem, making him a valuable contributor in a field where staying current is essential. In addition to his writing work, Ash has developed a strong skill set in managing content teams. He has led diverse groups of writers and researchers, overseeing the editorial process from topic selection, approval, editing, to final publication. His leadership ensured that content production was timely, accurate, and aligned with the strategic goals of the platforms he worked with. This has not only strengthened his expertise in content strategy but also honed his project management and team coordination skills. Ash's ability to combine technical expertise with editorial oversight is further bolstered by his knowledge of blockchain analysis tools such as Etherscan, Dune Analytics, and Santiment. These tools have provided him with the data necessary to create well-researched, insightful articles that offer deeper market perspectives. Whether it’s tracking the movement of digital assets or analyzing blockchain transactions, his analytical approach adds value to the content he produces, ensuring readers receive accurate and actionable information. In the realm of content creation, Ash is not limited to just cryptocurrency markets. He has demonstrated versatility in covering other emerging technologies, market trends, and digital transformation across various industries. His in-depth research, coupled with a sharp editorial eye, has made him a sought-after professional in the freelance writing community. From developing editorial calendars to managing content delivery schedules, he has honed a meticulous approach to project management that ensures timely, high-quality work delivery. Throughout his freelance career, Ash has consistently focused on improving audience engagement through well-researched, insightful, and relevant content. His ability to adapt to the evolving needs of clients, whether it's enhancing the visibility of digital platforms or producing thought-provoking pieces for a wide range of audiences, sets him apart as a dynamic force in the field of digital content creation. His contributions have helped to shape a well-rounded portfolio that showcases his versatility, technical expertise, and dedication to elevating the standards of journalism in blockchain and related sectors.

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