A federal judge in Manhattan has ordered Eddy Alexandre, founder of the collapsed crypto platform EminiFX, to pay more than $228 million in restitution after ruling the company operated as a Ponzi scheme that defrauded tens of thousands of investors.
The ruling, handed down by U.S. District Judge Valerie Caproni, also requires Alexandre to pay $15 million in disgorgement, according to a Tuesday court filing. The decision followed a summary judgment secured by the U.S. Commodity Futures Trading Commission (CFTC) against Alexandre and EminiFX.
“Defendants Alexandre and EminiFX are jointly and severally liable to pay restitution in the total amount of $228,576,962,” the order stated.
EminiFX, launched in 2021, raised more than $262 million from over 25,000 investors in just eight months by promoting weekly returns of 5% to nearly 10%. The platform claimed its “Robo-Advisor Assisted Account” used automated crypto and forex trading strategies.
In reality, investigators found the firm suffered net losses of at least $49 million and never used the trading technology it advertised. Alexandre siphoned off $15 million for personal expenses, including luxury cars, credit card bills, and cash withdrawals. Early investors were repaid with funds from new participants, a hallmark of a Ponzi scheme.
The case dates back to May 2022, when prosecutors and the CFTC filed parallel actions. In a criminal proceeding, Alexandre pleaded guilty to commodities fraud and in 2023 received a nine-year prison sentence along with a $213 million restitution order.
The latest civil ruling adds a parallel restitution and disgorgement mandate, though any repayments will offset his disgorgement obligation.
A court-appointed receiver has overseen asset recovery and distribution since 2022. A payout plan was approved in January, and victims began receiving funds earlier this year.
The case adds to a broader trend of enforcement actions against crypto fraud in the U.S. Losses from hacks, scams, and exploits totaled $2.47 billion in the first half of 2025, according to blockchain security firm CertiK. While incidents fell in the second quarter, total losses this year are already higher than in 2024.
