In brief
- A federal judge ordered Eddy Alexandre and EminiFX to pay $228.5 million in restitution to victims of a crypto Ponzi scheme that promised fake weekly returns of 5% to 9.99% using nonexistent “AI trading technology.”
- Alexandre exploited his position of trust within Long Island’s Haitian community and his own church congregation to recruit over 25,000 investors between September 2021 and May 2022.
- The CFTC’s civil victory follows Alexandre’s July 2023 criminal sentencing to nine years in prison, with court-appointed receivers already distributing recovered funds to defrauded investors since January 2025.
A federal judge has ordered Eddy Alexandre and his company EminiFX to pay $228.5 million in restitution to investors who lost money in what authorities called a ‘brazen’ crypto Ponzi scheme that bilked over 25,000 people out of more than $248 million.
U.S. District Judge Valerie Caproni granted summary judgment Tuesday in favor of the Commodity Futures Trading Commission in its civil enforcement action against Alexandre.
The ruling comes after Alexandre was already sentenced to nine years in federal prison last July for his role in operating the fraudulent EminiFX trading platform.
Alexandre, who represented himself, opposed the CFTC’s motion but failed to present evidence disputing the fraud claims.
The CFTC set restitution based on investor contributions minus withdrawals, with Judge Caproni adding $15 million in disgorgement, offset by restitution payments.
“Fraud persists, now often cloaked in high-tech buzzwords like AI and crypto,” Even Alex Chandra, partner at IGNOS Law Alliance, told Decrypt, adding how “rigorous verification is essential” for ventures promising outsized returns.
“Groups with limited financial literacy are prime targets,” he added, making investor education crucial for community protection. “No matter how trendy the technology, labels like AI or crypto do not prevent fraudulent activity.”
U.S. Attorney Damian Williams previously called Alexandre’s conduct “brazen,” noting he exploited trust in his church and Haitian community to draw in investors.
A history of fraud
Federal prosecutors first brought charges three years back, when Alexandre was arrested for commodities and wire fraud after soliciting $59 million from early investors.
Alexandre operated EminiFX from September 2021 through May 2022, promising investors “guaranteed” weekly returns of 5% to 9.99% through automated crypto and forex trading using what he called a “trade secret” technology dubbed “Robo-Advisor Assisted Account (RA3).”
EminiFX lost money during 24 of its 30 weeks of operation, and even in its best week, when Alexandre reported returns of 9.98%, the actual return was just 2.28%.
“The weekly figures [he] provided were not based on investment returns,” Alexandre admitted in a criminal sentencing letter.
Prosecutors said Alexandre diverted at least $15 million to personal accounts, spending on luxury cars, including a BMW and a Mercedes-Benz.
“Alexandre’s guilty plea in the Criminal Action prevents him from denying liability,” the court determined, applying the doctrine of collateral estoppel, which prevents defendants from re-litigating issues already decided in prior proceedings.
An equity receiver appointed by the court has been overseeing asset recovery efforts, with distributions to defrauded investors already underway since January 2025.
The case remains open as recovery efforts continue.
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