Federal Judge Rules EminiFX as a Ponzi Scheme, Mandates $228 Million in Restitution

EminiFX Declared a Ponzi Scheme: A New York federal court has officially labeled EminiFX, a cryptocurrency investment platform, as a Ponzi scheme, leading to significant financial penalties for its founder, Eddy Alexandre.

Financial Penalties Imposed: Alexandre faces over $228 million in restitution payments and an additional $15 million in disgorgement following a judgment by the US Commodity Futures Trading Commission (CFTC).

Background of Fraud: Launched in 2021, EminiFX promised high returns through automated trading but was found to have operated by using new investor funds to pay existing participants, resulting in substantial losses.

Ongoing Recovery Efforts: A court-appointed receiver is working to trace and recover funds for investors, with some money already returned after judicial approval of a distribution plan.