A US judge in New York has ordered Eddy Alexandre, the founder of the defunct crypto platform EminiFX, to repay over $228 million following a ruling that classified the company as a Ponzi scheme. The summary judgment was secured by the US Commodity Futures Trading Commission (CFTC), with US District Judge Valerie Caproni finding Alexandre and EminiFX jointly liable for restitution and an additional $15 million in disgorgement. EminiFX, launched in 2021, attracted more than 25,000 investors and raised over $262 million, promising weekly returns of up to 9.99% through automated trading. However, it incurred net losses of at least $49 million and never used the technology it advertised. Alexandre misappropriated at least $15 million for personal expenses before his arrest in May 2022, when he faced charges of commodities fraud and was later sentenced to nine years in prison. The court's ruling adds a civil restitution mandate that will offset his disgorgement obligation. A receiver has started distributing recovered assets to victims since the recovery process was approved earlier this year.

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