The Commodity Futures Trading Commission announced that the U.S. District Court for the Southern District of New York entered orders against Eddy Alexandre and EminiFX Inc. The court granted the CFTC's motions for summary judgment, injunctive relief and a civil monetary penalty. The orders require the defendants to pay $228,576,962 in restitution to defrauded investors. The orders also require the defendants to disgorge $15,049,500 in unlawful gains, offset by any amounts paid in restitution. The defendants must also pay a $45,148,500 penalty.
Alexandre is from Valley Stream, New York. EminiFX operated in Valley Stream and Manhattan, New York. The orders stem from the CFTC's May 12, 2022, complaint.
The court's summary judgment order described how the defendants presented EminiFX as an investment club offering affordable access to cryptocurrency and foreign exchange trading using the latest available technology. Tens of thousands of investors contributed more than $262 million during EminiFX's eight months of operation. According to the order, the defendants reported investment returns of 5% to 9.99% per week. EminiFX actually experienced net losses exceeding $49 million. At least $15 million of those losses resulted from Alexandre's misappropriation of investor funds for personal use. The court found that EminiFX was a Ponzi scheme and that investors' decisions to contribute money were based entirely on fraudulent misrepresentations.
During the CFTC's lawsuit, the court-appointed receiver recovered millions of dollars in investor funds and other assets held by the defendants. The receiver is distributing the recovered funds to defrauded investors. As of July 2026, the receiver had returned over $98 million to more than 28,000 investors. However, the CFTC cautioned that repayment orders may not recover victims' losses because wrongdoers may lack sufficient funds or assets.
Alexandre is serving a nine-year prison sentence based on a parallel action for related conduct brought by the U.S. Attorney's Office for the Southern District of New York.
CFTC Orders $288M in Restitution and Fines for EminiFX Ponzi Scheme
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CFT (Countering the Financing of Terrorism) authorities and regulators have escalated scrutiny over liquidity and crypto markets as the U.S. District Court for the Southern District of New York ordered Eddy Alexandre and EminiFX Inc. to pay over $288 million in restitution and penalties. The company defrauded tens of thousands of investors with weekly returns falsely reported at 5% to 9.99%. Alexandre is currently serving a nine-year prison sentence for his role in the commodity pool Ponzi scheme.
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