A federal judge in New York has ordered Eddy Alexandre, founder of the defunct crypto platform EminiFX , to pay more than $228 million in restitution after ruling the company was a Ponzi scheme that deceived tens of thousands of investors. The judgment, announced Tuesday, follows a case brought by the US Commodity Futures Trading Commission (CFTC). US District Judge Valerie Caproni held Alexandre and EminiFX jointly responsible for $228.6 million in restitution, alongside $15 million in disgorgement penalties. Court Orders Massive Restitution in EminiFX Fraud Case “Defendants Alexandre and EminiFX are jointly and severally liable to pay restitution in the total amount of $228,576,962,” the court filing stated. “Defendant Alexandre is liable to pay disgorgement in the amount of $15,049,500.” EminiFX, launched in 2021, promised investors weekly returns of 5% to nearly 10% through a “Robo-Advisor Assisted Account” that claimed to leverage automated trading in cryptocurrency and foreign exchange. The platform raised more than $262 million from over 25,000 investors in just eight months. However, investigators later revealed that the technology never existed and that the company had sustained at least $49 million in net losses. Court documents further showed Alexandre diverted at least $15 million for personal expenses, including luxury cars, credit card bills, and large cash withdrawals. Withdrawals for investors were funded using money from new participants, a hallmark of Ponzi operations. Criminal Sentencing and Ongoing Restitution The civil ruling comes in addition to Alexandre’s conviction in a parallel criminal case. In May 2022, prosecutors charged him with commodities fraud, leading to a nine-year prison sentence and an earlier $213 million restitution order. The court-appointed receiver overseeing EminiFX’s assets has already begun distributing recovered funds to victims, following approval of a payout plan earlier this year. Payments toward restitution will also offset Alexandre’s disgorgement obligations, the court noted. The case underscores the continuing risks in digital asset markets. Losses from crypto hacks, frauds, and scams reached $2.47 billion in the first half of 2025, according to blockchain security firm CertiK. While incidents fell in Q2 compared to the first quarter, total losses remain slightly higher than last year. For many EminiFX investors, restitution offers some relief, though the case remains a stark reminder of the dangers lurking in high-yield crypto schemes. The post EminiFX Founder Ordered to Pay $228M in Restitution: Details appeared first on TheCoinrise.com .
