EminiFX founder hit with $228M restitution order in Crypto Ponzi case

A federal judge in New York has ordered Eddy Alexandre, founder of the collapsed trading platform EminiFX, to pay more than $228 million in restitution after ruling the company was a crypto Ponzi scheme that defrauded tens of thousands of investors.

The US Commodity Futures Trading Commission (CFTC) secured a summary judgment against Alexandre and his company, with US District Judge Valerie Caproni holding them jointly liable for more than $228 million in restitution and an additional $15 million in disgorgement, according to a Tuesday court filing.

“Defendants Alexandre and EminiFX are jointly and severally liable to pay restitution in the total amount of $228,576,962,” the court wrote. “Defendant Alexandre is liable to pay disgorgement in the amount of $15,049,500.”

The decision arrives more than three years after Alexandre was first charged and more than a year after he pleaded guilty in a parallel criminal case. For investors, the ruling highlights the legal and financial risks tied to fraudulent schemes in the rapidly evolving digital asset sector.

How the crypto Ponzi scheme unfolded

Founded in 2021, EminiFX raised more than $262 million from over 25,000 investors in just eight months. The company claimed it could deliver weekly returns between 5% and 9.99% through a proprietary “Robo-Advisor Assisted Account,” allegedly powered by automated trading strategies in cryptocurrency and foreign exchange markets.

Court documents revealed a starkly different picture. Instead of using trading technology, the company suffered at least $49 million in net losses while operating as a crypto Ponzi scheme. Alexandre diverted more than $15 million for personal expenses, including luxury vehicles, credit card bills, and large cash withdrawals. Investor payouts were made not from legitimate profits but from funds contributed by new participants.

“The evidence clearly demonstrated that EminiFX was a fraudulent enterprise designed to enrich Alexandre at the expense of ordinary investors,” said Ian McGinley, Director of Enforcement at the CFTC, in a statement.

Parallel criminal and civil penalties

Alexandre’s downfall began in May 2022, when prosecutors and the CFTC filed parallel actions against him. In the criminal case, Alexandre admitted to commodities fraud and was sentenced to nine years in prison along with a $213 million restitution order.

The civil case, now concluded with Judge Caproni’s ruling, reinforces that restitution and disgorgement will remain central tools in tackling crypto Ponzi schemes. Any funds Alexandre pays toward restitution will offset his disgorgement obligation.

A court-appointed receiver has overseen the recovery and distribution of assets since 2022. Earlier this year, after a court-approved distribution plan, the receiver began returning recovered funds to victims.

“Our priority is maximizing recovery for those defrauded in this crypto Ponzi scheme,” the receiver’s office stated in a public update.

Wider implications for crypto investors

The EminiFX ruling reflects broader concerns in the industry about fraudulent digital asset platforms. Losses from hacks, scams, and exploits totaled $2.47 billion in the first half of 2025, according to blockchain security firm CertiK. While Q2 losses fell to $800 million, a 52% decline from Q1 the year’s total is already nearly 3% higher than the same period in 2024.

Legal experts say the case could serve as a reference point for regulators worldwide.

“This ruling illustrates how US courts are willing to treat digital asset fraud on the same scale as traditional financial crimes,” said Angela Walch, Professor at St. Mary’s University School of Law.

For investors, the lesson is clear: promises of outsized returns, especially those packaged as “automated” or “guaranteed” trading strategies, remain a red flag for a crypto Ponzi scheme.

What comes next

While Alexandre serves his prison sentence, the focus will remain on asset recovery and distribution to victims. The ruling also strengthens the CFTC’s position as one of the most aggressive regulators of crypto-related fraud.

For the wider crypto industry, the case underscores the need for more robust due diligence. With South Korea, the EU, and the US all moving toward stricter regulatory frameworks in 2025, cases like EminiFX will likely shape how enforcement strategies evolve.

As fraudulent projects continue to surface, the EminiFX saga demonstrates that courts are prepared to pursue restitution aggressively, ensuring that victims of a crypto Ponzi scheme have a path, however limited, to recover some of their losses.