Judge Orders $228M Restitution in EminiFX Crypto Fraud Case

Highlights:

• EminiFX crypto fraud led to $228.5 million in court-ordered restitution.
• Over 25,000 investors were misled with false claims of AI-driven profits.
• Restitution distribution to victims began in January 2025.

A U.S. federal judge has made a ruling in the long-running EminiFX crypto fraud case. The operator of the scheme, Eddy Alexandre, is required to pay $228.5 million. The order comes after a parallel criminal sentence issue in 2023. The scam defrauded more than 25,000 investors. Alexandre had promised a weekly earning with a secret AI trading tool. The tools, however, were not present. Over time, losses were increasing, and fake dashboards covered the reality.

A federal judge ordered Eddy Alexandre and EminiFX to pay $228.5 million in restitution to victims of a crypto Ponzi scheme that promised fake weekly returns of 5% to 9.99% using nonexistent "AI trading technology."

❗️It is essential to check the functionality before… pic.twitter.com/YkFEy6a2JY

— Web3Catalysor (@web3Catalysor) August 20, 2025

EminiFX Crypto Fraud Leaves Thousands in Financial Ruin

This fraud took place between September 2021 and May 2022. Alexandre ran EminiFX, which offered a weekly yield of as much as 9.99%. He used terms such as “Robo-Advisor Assisted Account (RA3)” to develop trust among investors.

In reality, losses were met during the majority of the trading weeks. The highest-performing week brought a 2.28% gain only. However, Alexandre said it had a growth of close to 10% per week. The court records showed that he directed at least $15 million into his personal accounts. He spent the investor funds by purchasing high-end automobiles, such as BMW and Mercedes-Benz.

Alexandre was sued in civil court by the Commodity Futures Trading Commission (CFTC). Judge Valerie Caproni ruled in favor of the CFTC and held that Alexandre failed to provide any evidence to contradict the allegations against him. The ruling involves $15 million in disgorgement. However, this sum will offset restitution. Victim repayments are still the priority.

Judge Finds Fraud “Brazen” and Calculated

The community Alexandre tapped was Haitian on Long Island and members of his church. According to the prosecutors, he exploited community trust to perpetrate the fraud. The CFTC awarded restitution, taking into consideration total contributions, less any withdrawals. The restitution started with a court-appointed equity receiver in January 2025.

In May 2022, Alexandre was arrested and at first pleaded not guilty. As of February 2023, he pleaded guilty. However, in July of 2023, he was sentenced to nine years in federal prison. The legal principle of collateral estoppel was applied by the court. Alexandre was unable to plead not guilty to the civil case because of his previous guilty plea. This principle prevented him from rearguing facts that had been decided in his criminal conviction.

Restitution Begins as Authorities Pursue Recovery

With the determination of restitution settled, the CFTC leads the next steps. Funds recovered through asset recovery will be shared among the victims. The recovery totals have not been conclusively determined, but the framework facilitates recovery. Some funds might never be returned owing to losses and personal expenditures.

Already, the authorities have started returning money to the defrauded investors. The guilty plea and restitution that were ordered by the court mark a major milestone in the EminiFX crypto fraud case. Meanwhile, more incidents of crypto fraud are getting revealed. In one case, the DOJ charged a Brazilian man with organizing a $290 million cryptocurrency scheme. The Swiss-extradited defendant could serve 20 years on each count.

The DOJ has extradited Brazilian national Dover Braga from Switzerland to face charges in a $290 million crypto fraud case. He allegedly scammed thousands of victims between 2016 and 2021 and is now facing a 13-count indictment. #CryptoFraud #DOJ

— FartFy News (@fartfy_news) February 22, 2025

These two incidents are indicators of increased oversight of crypto investment scams. However, regulators and the courts insist on accountability and investor protection.