Head of crypto, FX trading platform EminiFX pleads guilty to US$248 million fraud charges

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Eddy Alexan­dre, the leader of the cryp­tocur­ren­cy and forex trad­ing plat­form Emi­niFX, has plead­ed guilty to solic­it­ing invest­ments worth more than US$248 mil­lion from tens of thou­sands of investors, the US Depart­ment of Jus­tice announced Friday.

See relat­ed arti­cle: South Korea pros­e­cu­tors say Ser­bia ready to help fraud inves­ti­ga­tion into Terra’s Do Kwon

Fast facts

  • Emi­niFX start­ed oper­a­tions in the sum­mer of 2021, promis­ing cus­tomers that the company’s “Robo-Advi­sor Assist­ed” account would pro­vide week­ly returns of at least 5%. 
  • Things came crash­ing down in May 2022 when US author­i­ties found that Alexan­dre had pock­et­ed a sub­stan­tial amount of investor funds and had secret­ly lost mil­lions of dol­lars of what had been invested.
  • “Alexandre’s scam caused investors to lose mil­lions of dol­lars, and this case should serve as yet anoth­er warn­ing to cryp­tocur­ren­cy exec­u­tives that the South­ern Dis­trict of New York is close­ly watch­ing and ready to pros­e­cute any and all mis­con­duct in the cryp­to mar­kets,” said US Attor­ney Dami­an Williams.
  • Alexan­dre pled guilty to one count of com­modi­ties fraud, agreed to pay fines of about US$249 mil­lion, and to pay resti­tu­tion to the vic­tims in an amount to be spec­i­fied by the Court. 
  • The dis­graced entrepreneur’s final sen­tenc­ing in front of a judge is sched­uled for July 12. The offense of com­modi­ties fraud car­ries a max­i­mum sen­tence of 10 years. 
  • Cryp­tocur­ren­cy and NFT rug pulls have been a grow­ing issue with­in the blockchain space, with over US$25 bil­lion across over 500 fraud­u­lent projects lost to date, accord­ing to data from soft­ware and tech­nol­o­gy infor­ma­tion site Comparitech. 

See relat­ed arti­cle: CEO of South Korea’s V Glob­al US$2 bln cryp­to pyra­mid scheme gets 25 years in prison

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