Eddy Alexandre, EminiFX Could Face $228.5M Restitution in Crypto Ponzi Case Involving 25,000 Investors

• Judge orders $228.5M restitution for EminiFX investors

• Alexandre sentenced to nine years; CFTC won summary judgment citing fraud and collateral estoppel.

• Distributions began January 2025; at least $15M diverted to personal accounts and $15M added as disgorgement.

Eddy Alexandre restitution ordered at $228.5M after CFTC win; victims’ distributions began Jan 2025 — learn how recovery works and next steps.

What is Eddy Alexandre restitution and how much was ordered?

Eddy Alexandre restitution is the court-ordered repayment to investors after the CFTC proved that Alexandre operated a fraudulent EminiFX trading platform. U.S. District Judge Valerie Caproni ordered $228.5 million in restitution, reflecting investor losses reduced by withdrawals and offset by disgorgement.

How did the CFTC calculate the restitution amount?

The CFTC calculated restitution using investor contributions minus verified withdrawals, then added $15 million in disgorgement, with the final award offset by restitution payments already made. The court applied collateral estoppel because Alexandre’s criminal guilty plea barred re-litigation of fraud findings.

Why did the court find EminiFX a Ponzi scheme?

Federal prosecutors and the CFTC demonstrated that EminiFX promised guaranteed weekly returns of 5%–9.99% and reported fabricated performance figures. EminiFX lost money in 24 of 30 weeks and diverted funds for personal use, which matches legal definitions of a Ponzi-style fraud.

What evidence supported the CFTC’s summary judgment?

Evidence included investor records, internal accounting showing reported versus actual returns (best reported 9.98% vs actual 2.28%), bank transfers diverting at least $15 million to personal accounts, and Alexandre’s criminal guilty plea admitting misrepresentations.

Frequently Asked Questions

How long was Eddy Alexandre sentenced to federal prison?

Alexandre received a nine-year federal prison sentence in July 2023 after a criminal conviction for commodities and wire fraud tied to the EminiFX scheme.

Can victims still file claims for restitution?

Yes. An equity receiver is managing asset recovery and claim distributions; affected investors should follow notices from the receiver and provide required documentation to participate in distributions.

How will recovered funds be distributed?

Distributions are managed by a court-appointed equity receiver who verifies claims, aggregates recovered assets, and issues pro rata payments based on verified net losses after allowable offsets.

How were investors targeted?

Authorities say Alexandre exploited trust within his church and Haitian community and targeted groups with limited financial literacy, using buzzwords like “AI” and “crypto” to lend false credibility to the scheme.

Key Takeaways

• Judgment amount: $228.5 million in restitution ordered by Judge Valerie Caproni.
• Criminal outcome: Alexandre convicted and sentenced to nine years in federal prison.
• Recovery status: Asset recovery underway; distributions to victims began January 2025 under an equity receiver.

How can investors protect themselves from similar frauds?

Perform independent verification of promised returns, require transparent performance reports, consult licensed financial professionals, and treat guarantees of high returns with skepticism. Expert input from legal professionals and verified filings are critical.

Conclusion

The CFTC victory and Judge Caproni’s $228.5 million restitution order underscore legal consequences for fraudulent crypto platforms. COINOTAG will monitor ongoing asset recovery and distribution updates; affected investors should follow receiver communications and preserve documentation to support claims.