EminiFX Founder Ordered to Pay $228 Million Restitution in Ponzi Scheme Ruling

• Eddy Alexandre must pay $228M in restitution, $15M in disgorgement.
• The order follows a criminal conviction for commodities fraud.

On August 20, 2025, Reuters reported that U.S. District Judge Valerie Caproni ordered Eddy Alexandre, founder of the fraudulent cryptocurrency platform EminiFX, to pay over $228 million in restitution to investors. The court also mandated an additional $15 million in disgorgement. This action stems from a civil enforcement case brought by the U.S. Commodity Futures Trading Commission (CFTC), which secured a summary judgment. Alexandre had previously been sentenced to nine years in prison in July 2023 after pleading guilty to commodities fraud.

Operating between September 2021 and May 2022, EminiFX attracted over 25,000 investors, raising more than $262 million. The platform made false claims of using a "Robo-Advisor Assisted Account" to guarantee weekly returns of 5% to 9.99%. Investigators revealed that the technology was never implemented and that the platform incurred net losses of at least $49 million. Alexandre misappropriated at least $15 million for personal use, including luxury cars, while employing a Ponzi scheme to pay earlier investors with funds from new ones.

This case underscores the expanding challenges posed by fraud in the cryptocurrency sector. Blockchain security firm CertiK reported $2.47 billion lost to crypto-related scams, hacks, and exploits in the first half of 2025. Hacken’s analysis pegged these losses at over $3.1 billion for the same period, reflecting an upward trend compared to 2024.

The rise in fraudulent activity has fueled debates on cryptocurrency regulation. For instance, Wall Street banking associations have called for revisions to the U.S. stablecoin framework in the GENIUS Act, citing potential disruptions to traditional banking. Conversely, crypto advocacy groups, including the Blockchain Association and the Crypto Council for Innovation, argue such changes could stifle innovation and competition in the industry.