CFTC Wins $228M Judgment Against Pastor Who Ran Crypto Ponzi Promising 5-10% Weekly Returns
The U.S. District Court docket for the Southern District of New York granted summary judgment, awarding the Commodity Futures Buying and selling Fee (CFTC) $228.6 million in restitution in opposition to Eddy Alexandre and his firm, EminiFX, for working a large crypto Ponzi scheme.
Alexandre, who exploited his place inside his church and the Haitian group, defrauded over 25,000 buyers of $262 million whereas promising assured weekly returns of 5% to 9.99% by means of non-existent “roboassisted advisor” expertise.
The civil judgment follows Alexandre’s legal conviction and nine-year prison sentence for commodities fraud in July 2023.
Alexandre diverted at the very least $15 million in investor funds to private accounts, buying luxurious automobiles, together with a BMW, whereas his buying and selling platform misplaced cash throughout 24 of its 30 weeks of operation.
From Church Pulpit to Federal Jail By means of Fraudulent Funding Membership
Alexandre marketed EminiFX as an “funding membership” providing easy accessibility to cryptocurrency and foreign currency trading utilizing superior expertise that by no means existed.
The unregistered operation attracted tens of hundreds of buyers between September 2021 and Could 2022 by means of guarantees of doubling investments inside 5 months.
The scheme’s fraudulent nature turned obvious by means of court docket findings that EminiFX skilled internet losses exceeding $49 million regardless of reporting astronomical returns.
Even throughout its best-performing week, when Alexandre claimed 9.98% returns, precise efficiency reached solely 2.28%.
Alexandre’s recruitment technique closely exploited his spiritual place and group standing inside the Haitian church community.
He enlisted congregation members to assist recruit EminiFX buyers, leveraging sacred belief relationships to develop the fraudulent operation throughout ethnic and spiritual communities.
The pretend expertise claims centered on a “Robo-Advisor Assisted Account (RA3)” that Alexandre promoted as his “trade secret.”
He refused to elucidate the expertise’s workings whereas guaranteeing it might generate constant weekly earnings by means of automated buying and selling algorithms.
Court docket paperwork revealed Alexandre used $155,000 in investor funds to buy a BMW for himself and spent an extra $13,000 on luxurious automobile funds to Mercedes-Benz.
His misappropriation totaled at the very least $15 million transferred from investor accounts to private banking and funding accounts.
The Ponzi construction turned evident as roughly $34 million in withdrawals to earlier buyers got here from the identical commingled pool containing new investor contributions.
Many contributors withdrew greater than their authentic deposits, whereas later buyers misplaced all the pieces when the scheme collapsed.
Alexandre’s responsible plea within the parallel legal case established his legal responsibility by means of collateral estoppel, with admissions that reported return figures “weren’t based mostly on funding returns” and that the promised expertise remained non-existent all through operations.
Huge Monetary Harm and Regulatory Response
The court docket decided that over eight months of operation, EminiFX collected greater than $262 million from tens of hundreds of buyers whereas dropping cash persistently.
The scheme’s temporary period contrasted with its large scale and devastating monetary affect on victims.
Alexandre’s legal sentencing in July 2023 included 9 years of imprisonment and orders to pay greater than $213 million in restitution.
The civil judgment added $228.6 million in restitution collectively imposed on each Alexandre and EminiFX, with Alexandre dealing with an extra $15 million disgorgement for private enrichment.
An fairness receiver appointed by the court docket gained unique management over EminiFX property and developed distribution plans accredited in January 2025.
CFTC Faces Enforcement Credibility Questions Amid Gemini Controversy
The Alexandre judgment comes as allegations have been uncovered from crypto alternate Gemini accusing the CFTC of conducting vindictive “lawfare” campaigns prioritizing profession development over professional regulation.
@Gemini recordsdata grievance accusing @CFTC of 7-year “lawfare” marketing campaign based mostly on false whistleblower claims from discredited former COO who facilitated $7.45 million fraud then sought revenge.#Gemini #Cftchttps://t.co/b01m83a4BG
— Cryptonews.com (@cryptonews) June 18, 2025
In June, Gemini filed a complaint with the CFTC Inspector Common alleging that enforcement legal professionals “selectively and unfairly weaponized” federal regulation throughout a seven-year investigation that originated from false whistleblower allegations made by former worker Benjamin Small, who was terminated for facilitating a $7.45 million fraud scheme.
Regardless of a 2022 arbitrator ruling that discovered Small “fraudulently procured his employment” and “lied repeatedly,” the CFTC continued pursuing Gemini whereas taking no motion in opposition to him.
Small might now obtain a $1.5 million whistleblower award for his false allegations, whereas Gemini paid a $5 million settlement in January 2025 regardless of the company by no means producing proof of intentional wrongdoing.
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