A U.S. federal court has found Eddie Alexandre and the company EminiFX guilty of creating a massive cryptocurrency pyramid scheme, ordering the return of $228.5 million to investors. The ruling affects over 25,000 victims who lost money between September 2021 and May 2022.
This is reported by Business • Media
Fraud Using Fake Profitability and “AI”
According to the court, Alexandre actively exploited the trust of the Haitian community in Long Island and members of his own church, promising guaranteed weekly returns of up to 9.99% through the implementation of “artificial intelligence trading technology.” The EminiFX platform promoted a product called Robo-Advisor Assisted Account (RA3), promising stable income; however, the actual returns were significantly lower, and for 24 out of 30 weeks of operation, the company incurred losses.
The fraudster’s actions were deemed “brazen,” and federal prosecutor Damian Williams noted the abuse of trust for personal gain.
Legal Consequences and Compensation for Victims
In July 2023, Alexandre was sentenced to nine years in prison for orchestrating the fraudulent scheme, and the CFTC determined compensation based on the funds invested and withdrawn by investors. Additionally, the judge ordered the return of another $15 million that Alexandre illegally transferred to his personal accounts and spent on luxury items.
As of January 2025, court-appointed trustees have already begun distributing the returned funds among investors. Efforts to recover assets are ongoing, and the case remains open. The U.S. Commodity Futures Trading Commission emphasized that modern technologies, including artificial intelligence and cryptocurrencies, do not guarantee protection against fraud, especially for individuals with insufficient financial literacy.
Previously, an American court found Tornado Cash co-founder Roman Storm guilty of conspiracy to engage in unlicensed money transmission activities.