Eddy Alexandre Sentencing: How a $262M Crypto Fraud Unraveled in Federal Court

A New York federal court has delivered a crushing blow to one of cryptocurrency’s most brazen schemes. Eddy Alexandre, the mastermind behind EminiFX, now faces over $228 million in court-ordered restitution alongside a nine-year prison sentence—a devastating culmination to what started as a church-community investment opportunity that swindled more than 25,000 people.

From Promise to Prison: The EminiFX Timeline

When EminiFX launched in 2021, it marketed an ambitious vision: an automated trading platform powered by what it called a “Robo-Advisor Assisted Account” that would deliver consistent weekly returns between 5% and 9.99% in cryptocurrency and forex markets. The pitch was seductive enough to attract $262 million within eight months, a success built on trust within Alexandre’s inner circles—particularly his church congregation and the Haitian community where he held considerable influence.

But that trust was entirely misplaced. Court documents reveal the platform’s foundational technology never actually existed. The entire operation ran on a simple mechanism: newly deposited investor funds were recycled to pay earlier participants, the hallmark of a Ponzi structure. When investigators finally audited the books, they uncovered at least $49 million in direct losses—money that simply vanished into the scheme’s collapse.

The Sentencing Decision and Financial Penalties

US District Judge Valerie Caproni issued the latest judgment following Alexandre’s guilty plea in a separate criminal proceeding. The CFTC and prosecutors had coordinated parallel actions starting in May 2022, ultimately securing both criminal conviction and civil fraud findings. Beyond the $228 million civil restitution order, Alexandre was also hit with $15 million in disgorgement—a legal mechanism to strip away ill-gotten gains.

The criminal case, which concluded earlier, had already imposed a $213 million restitution requirement. Rather than stack penalties, the court clarified that any payments made under one order would offset obligations under the other, preventing double-jeopardy-style financial destruction while still ensuring accountability.

What made this case particularly egregious was Alexandre’s personal enrichment during the scheme’s operation. Investigators traced at least $15 million withdrawn directly for his lifestyle—luxury vehicles, credit card purchases, and cash withdrawals—while thousands of ordinary investors were left empty-handed.

Recovery Efforts: Slow but Ongoing

Since 2022, a court-appointed receiver has pursued the painstaking work of asset recovery. Despite the complexity of tracing cryptocurrency and international transfers, progress has been made. Earlier in 2024, the first distribution of recovered funds reached victimized investors following judicial approval of a recovery plan, offering at least partial relief to those defrauded.

The civil ruling against Eddy Alexandre represents a milestone in crypto fraud prosecution, establishing clear precedent for how courts handle platform-based Ponzi schemes operating within vulnerable communities. As recovery efforts continue, it stands as a stark reminder that no amount of promised returns justifies bypassing fundamental due diligence and regulatory oversight.