Accused NY Fraudster Agrees To Forfeit $248M He Allegedly Racked Up From Thousands Of Investors

A New York man admitted to committing fraud and has agreed to forfeit to the US government hundreds of millions of dollars he's accused of racking up from tens of thousands of investors until his arrest less than a year ago.

Long Island resident Eddy Alexandre, age 50, of Valley Stream, the leader of a purported cryptocurrency and foreign exchange trading platform called EminiFX, solicited more than $248 million after making false representations in connection with the EminiFX trading platform, the Southern District of New York, announced on Friday, Feb. 10.

According to the allegations in the Indictment and other filings and statements made in court:

* From around September 2021, up to and including in or about May 2022, Alexandre operated EminiFX, Inc., which was marketed as an investment platform through which investors would earn passive income through automated investments in cryptocurrency and forex trading.

* Alexandre offered his investors "guaranteed" high investment returns using new technology that he claimed was secret. Specifically, Alexandre falsely represented to investors that they would double their money within five months of investing by earning at least 5 percent weekly returns on their investment using a "Robo-Advisor Assisted account" to conduct trading.

* Alexandre referred to this technology as his "trade secret" and refused to tell investors what the technology was.

* Each week EminiFX's website falsely represented to investors that they had earned at least 5 percent on their investment, which they could withdraw or re-invest.

* In truth and in fact, and as Alexandre well knew, EminiFX did not earn 5 percent weekly returns for its investors. Alexandre did not even invest a substantial portion of the investor funds entrusted to him, and he sustained millions of dollars in losses on the limited portion of funds that he did invest, which he did not disclose to his investors.

* Instead of using investors' funds as he had promised, Alexandre also misdirected at least approximately $14,700,000 to his personal bank account. For example, Alexandre used $155,000 in investor funds to purchase a BMW car for himself and spent an additional $13,000 of investor funds on car payments, including to Mercedes-Benz.

"Eddy Alexandre admitted today to luring investors to his cryptocurrency investment scam by fabricating weekly returns of at least 5 percent," US Attorney for the SDNY District Damian Williams said on Friday, "In reality, Alexandre failed to invest a substantial portion of this investors' money and even used some funds for personal purchases.

"Alexandre's scam caused investors to lose millions of dollars, and this case should serve as yet another warning to cryptocurrency executives that the Southern District of New York is closely watching and ready to prosecute any and all misconduct in the crypto markets."

Alexandre pleaded guilty to one count of commodities fraud and agreed to pay forfeiture in the amount of $248,829,276.73, as well as restitution in an amount to be specified by the court.

The offense of commodities fraud carries a maximum sentence of 10 years in prison.

His sentencing is scheduled for Wednesday, July 12.