- The CEO of fraudulent crypto platform EminiFXhas pleaded guilty to defrauding his investors
- EminiFX investors put $248.8 million into the scheme, which Eddie Alexandre used partly on himself
- Alexandre faces up to a decade in jail
The CEO of crypto investment scam EminiFX, which claimed to be a crypto platform offering guaranteed 5% weekly returns, faces up to ten years in prison for defrauding investors to the tune of almost $249 million. Eddie Alexandre pedaled EminiFX from September 2021 to May 2022, failing to invest a substantial portion of his investors’ money and, as is often the case, using some funds for personal purchases.
5% Weekly Gains Promised
For the duration of his scam, Alexandre presented EminiFX as a source of passive income through automated investments in cryptocurrency and forex trading. He promised investors “guaranteed” high returns by using his secret, cutting-edge technology which he claimed would double investors’ money within five months by earning 5% weekly returns through a “Robo-Advisor Assisted account.”
Alexandre referred to this technology as his “trade secret” and refused to reveal it to anyone, while every week the EminiFX website misled investors by falsely stating that they had earned at least 5% on their investment, which they could either withdraw or reinvest. The ruse is very similar to that perpetrated by Countinghouse, although it at least didn’t promise gains and was registered with the Australian Securities and Investments Commission, giving it an air of legitimacy.
Alexandre Spent $14.7 Million on Himself
Contrary to what Alexandre represented, EminiFX didn’t generate 5% weekly returns for its investors, and in fact Alexandre held back a significant amount of the funds given to him and incurred massive losses on the small portion of funds he did invest, which he kept hidden from investors. Instead of using the funds for their intended purpose, Alexandre misappropriated approximately $14.7 million for his personal use, including $155,000 on a BMW and an additional $13,000 in car payments, including payments for a Mercedes Benz.
Alexandre last week pled guilty to one count of commodities fraud and agreed to pay forfeiture in the amount of $248.8 million, as well as restitution in an amount to be specified by the court. He could also be jailed for up to ten years due to the charge of commodities fraud he has admitted to.
