Eddy Alexandre, CEO, EminiFX, a crypto trading platform, has pleaded guilty of commodity-based charges in a New York district court. It is believed that Alexandre has accepted to indemnify investors for the millions worth funds invested in his “cryptocurrency investment scam,” as reported by Cointelegraph.
According to Cointelegraph, on February 10, 2023, United States Department of Justice (DOJ) revealed that Alexandre made a guilty appeal to one count of commodities fraud, and will make a $248 million worth payment in forfeiture. Experts believe that the context of restitution is still devoid of specifications. In May, 2022, Alexandre was arrested and charged due to his involvement with EmniFX, and is expected to get a prison sentence of 10 years.
On the basis of information by Cointelegraph, insights from Damian Williams, US attorney, Southern District of New York, stated that between September, 2021, and May, 2022, Alexandre “solicited more than $248 million in investments from tens of thousands of individual investors.” Williams highlighted Alexandre purporting EmniFX could provide “weekly returns of at least 5%.” Alexandre claimed that EmniFX can generate passive income that utilised a technology to ensure trading automation in crypto and foreign currencies that “guaranteed” the given investment returns.
Moreover, Cointelegraph noted that sustained losses worth millions of dollars which he didn’t reveal to investors. Reportedly, certain investors expressed support for Alexandre despite fraud allegations. Alexandre will also be subjected to a civil suit by Commodity Futures Trading Commission (CFTC), on account of “fraudulent solicitation and misappropriation” over crypto and foreign exchange trading.
(With insights from Cointelegraph)