A United States federal judge has ordered the founder of collapsed crypto platform EminiFX, Eddy Alexandre, to repay more than $228 million after ruling the company operated as a Ponzi scheme that defrauded tens of thousands of investors.
Court Rules on Restitution and Disgorgement
US District Judge Valerie Caproni delivered the ruling in New York, holding both Alexandre and EminiFX jointly liable for $228,576,962 in restitution. In addition, Alexandre was found personally responsible for $15,049,500 in disgorgement. The order followed a summary judgment secured by the US Commodity Futures Trading Commission (CFTC).
The court emphasised that any payments towards restitution will offset the disgorgement obligation. The case marks one of the most significant crypto fraud rulings in recent years, reflecting the scale of investor losses and the severity of the deception.
EminiFX’s Rise and Collapse
Launched in 2021, EminiFX quickly drew in over 25,000 investors, raising more than $262 million in just eight months. The company promised weekly returns of 5 to 9.99 per cent through what it described as a “Robo-Advisor Assisted Account”, which was said to use automated trading strategies in cryptocurrency and foreign exchange markets.
However, investigators later revealed that no such technology existed. Court documents showed that the platform in fact suffered net trading losses of at least $49 million. To maintain the illusion of success, withdrawals made by earlier investors were funded using new deposits, a classic characteristic of a Ponzi scheme.
Misuse of Investor Funds
The investigation also uncovered that Alexandre diverted at least $15 million for personal use. These funds were spent on credit card payments, luxury cars and cash withdrawals, rather than the sophisticated trading operations investors had been promised.
The fraudulent practices eventually came to light in May 2022 when prosecutors and the CFTC filed parallel actions against Alexandre and his company.
Criminal Conviction and Sentencing
Alongside the civil proceedings, Alexandre faced criminal charges. He pleaded guilty to commodities fraud and in 2023 was sentenced to nine years in prison. The criminal case also required him to pay $213 million in restitution.
The conclusion of the civil case with Judge Caproni’s ruling now adds a further restitution and disgorgement mandate. While the obligations overlap, the ruling underscores the seriousness of the fraud and provides additional avenues for victim compensation.
Efforts to Recover Investor Losses
Since 2022, a court-appointed receiver has overseen the recovery and redistribution of assets linked to EminiFX. Earlier this year, following the approval of a distribution plan in January, the receiver began issuing payments to victims. The process is ongoing, with hopes of maximising recovery for those affected.
Broader Context of Crypto Scams
The EminiFX collapse is part of a wider trend of losses in the cryptocurrency sector. According to blockchain security firm CertiK, scams, hacks and exploits led to losses totalling $2.47 billion in the first half of 2025 alone.
While Q2 saw $800 million lost across 144 incidents, representing a 52 per cent decline in value and 59 fewer hacks compared with the first quarter, the overall figure for the year so far remains nearly 3 per cent higher than in 2024. Analysts suggest that despite improved security practices, fraudulent schemes continue to pose a major risk for investors.
A Warning for Investors
The case of EminiFX highlights the dangers of too-good-to-be-true promises in the cryptocurrency sector. With weekly returns of nearly 10 per cent being marketed as safe and reliable, thousands of individuals were misled into believing in a system that never existed.
Regulators and courts are now working to ensure accountability, but the losses underline the importance of vigilance among investors in a rapidly evolving and often opaque market.
