EminiFX Founder Ordered to Repay $228M in Fraud.

Akash Kumar

• August 20, 2025
• ⋅
• 2 min read

A federal court in New York has made a historic decision that Eddy Alexandre, the founder of the now-defunct crypto platform EminiFX, must pay back more than $228 million after running a Ponzi scheme that cheated thousands of investors. The decision shows how regulators are cracking down more and more on fraud and protecting investors in the digital asset sector.

Details of EminiFX Fraud and Restitution

The Commodity Futures Trading Commission (CFTC) won a clear summary judgment against Alexandre and EminiFX. U.S. District Judge Valerie Caproni said they were both responsible for $228,576,962. Alexandre also has to pay a $15 million disgorgement fine. The decision comes more than three years after the first charges were filed and a year after Alexandre admitted guilt in a different criminal case.

EminiFX, which started in 2021, got more than 25,000 investors by lying about how they could get 5% to 9.99% returns every week through a “Robo-Advisor Assisted Account” that claimed to use automated trading strategies in the crypto and forex markets. The platform lost at least $49 million and didn’t use any of the technology it said it would. Alexandre used at least $15 million for personal expenses like luxury cars and credit card payments. He paid out existing investors with new deposits, which is a classic sign of a Ponzi scheme.

Sentencing and Recovery Efforts

In May 2022, the CFTC and prosecutors started separate investigations that led to Alexandre’s conviction for commodities fraud and a nine-year prison sentence, as well as a $213 million restitution order. The new civil case adds more restitution and disgorgement orders. Any restitution paid will count toward the disgorgement obligation.

A court-approved payout plan allowed a court-appointed receiver to start giving money back to victims in early 2025. According to CertiK, losses from hacks, scams, and exploits in the crypto sector reached $2.47 billion in the first half of this year. This case shows that these risks are still present.

The EminiFX verdict sends a clear message to the crypto industry about being responsible and protecting investors. As regulators tighten their grip, investors are told to do their homework before getting involved in digital asset schemes.

Read also: SEC Delays Decision on Key Crypto ETFs