A federal judge in New York has ordered Eddy Alexandre, founder of the collapsed crypto platform EminiFX, to pay more than $228 million in restitution after ruling that the company was a Ponzi scheme that defrauded tens of thousands of investors.
The US Commodity Futures Trading Commission (CFTC) secured summary judgment against Alexandre and EminiFX, with US District Judge Valerie Caproni holding them jointly liable for more than $228 million in restitution and an additional $15 million in disgorgement, according to a Tuesday court filing.
“Defendants Alexandre and EminiFX are jointly and severally liable to pay restitution in the total amount of $228,576,962,” the court ruled. “Defendant Alexandre is liable to pay disgorgement in the amount of $15,049,500.”
The ruling comes more than three years after Alexandre was first charged and more than a year after he pleaded guilty in a parallel criminal case.
A snapshot of the case ruling. Source: CourtListener
Related: Crisis management for CEX during a cybersecurity threat
EminiFX raised $262 million on fake robo-trading claims
EminiFX launched in 2021 and quickly attracted over 25,000 investors, raising more than $262 million in just eight months. The company promised weekly returns of 5% to 9.99% through a so-called “Robo-Advisor Assisted Account” that allegedly deployed automated trading strategies in crypto and forex markets.
In reality, court filings show the platform sustained net losses of at least $49 million and never deployed the technology it advertised.
According to investigators, Alexandre siphoned off at least $15 million for personal use, funding credit card bills, luxury cars and cash withdrawals. Meanwhile, investor withdrawals were paid out using commingled funds from new participants.
Related: Blockchain security must localize to stop Asia’s crypto crime wave
Court sentences EminiFX founder to nine years
Alexandre’s downfall began in May 2022 when prosecutors and the CFTC filed parallel actions. In the criminal case, he admitted to commodities fraud and was sentenced to nine years in prison, along with a $213 million restitution order.
The civil case, now concluded with Caproni’s order, adds a parallel restitution and disgorgement mandate, though any payments toward restitution “shall offset his disgorgement obligation,” per the court ruling.
The court-appointed receiver, who has been overseeing the recovery and distribution of assets since 2022, began paying out recovered funds to victims earlier this year after a distribution plan was approved in January.
Losses from crypto hacks, scams and exploits reached $2.47 billion in the first half of 2025, according to CertiK. While Q2 saw $800 million lost across 144 incidents, a 52% drop in value and 59 fewer hacks compared to Q1, the year’s total so far is already up almost 3% from 2024.
Magazine: Coinbase hack shows the law probably won’t protect you — Here’s why
