EminiFX CEO Pleads Guilty to $248M Ponzi Scheme
Eddy Alexandre, CEO of the New York-based trading and investment platform EminiFX, has pleaded guilty to commodities fraud and his role in driving a $248 million Ponzi Scheme. The United States Department of Justice has reported that Eddy Alexandre has issued a guilty plea in connection with the trading of cryptocurrencies and foreign currencies, which turned out to be a Ponzi Scheme. The guilty plea means Alexandre has agreed to forfeit the $249 million he amassed from thousands of users operating EminiFX. The trading platform had promised a 5% weekly profit and double investments in five months. EminiFX was operational between September 2021 and May 2022. Alexander, 50, a long-time cybersecurity engineer, now faces up to 10 years in prison and a fine of between $40,000 to $1 million when he is sentenced on July 12th. Before being busted, EminiFX was marketed as a cryptocurrency and forex trading platform. EminiFX promised investors a “guaranteed return of 5%” weekly through automated investments on the platform. However, CEO Eddy Alexandre never invested a significant amount of the money and even employed some of the “funds for personal purchases,” including a transfer of approximately $14.7 million to his account. Following his initial arrest in May 2022, Eddy Alexandre pleaded not guilty. In addition to the current case, the CFTC has filed that he was involved in “fraudulent solicitation and misappropriation” of funds for trading. Most scams thrive because they offer too-good-to-be-true investment opportunities. For example, while staking across exchanges usually offer an annual percentage yield between 3%-7%, EminiFX offered a similar return in a week and 100% in five months. The unsustainable profit promised is one way you can spot a crypto scam. Another is the lack of a clear path for profits, like EminiFX stating its profits were made from an automatic trading bot. The case of EminiFX and Eddy Alexandre adds to the increasing number of hacks and scams plaguing the crypto industry and how investors pursue quick profits. Read about other Ponzi Schemes busted by the DOJ in: Find solutions to scams below:
EminiFX CEO Pleads Guilty to Involvement in Ponzi Scheme
What Happened with EminiFX?
Hacks and Scams, the Plague of Crypto
On the Flipside
Why You Should Care
U.S. Justice Department Charges Nine Individuals with Running Crypto Ponzi Schemes
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Read more: https://dailycoin.com/eminifx-ceo-plead-guilty-to-248m-ponzi-scheme/
Text source: DailyCoin.com
