based on materials from the site - By Cointelegraph
The founder of EminiFX must pay $228 million as part of a court case regarding a financial pyramid scheme.
A federal judge in New York ordered Eddie Alexander, the founder of the bankrupt cryptocurrency platform EminiFX, to pay over $228 million in damages, ruling that the company was a financial pyramid that defrauded tens of thousands of investors.
The U.S. Commodity Futures Trading Commission (CFTC) obtained a summary judgment against Alexander and EminiFX. U.S. District Judge Valerie Caproni held them jointly liable for restitution of over $228 million and another $15 million as a return of unlawfully obtained profits, according to court documents filed on Tuesday.
The court ruled, "Defendants Alexander and EminiFX are jointly liable for restitution in the total amount of $228,576,962." The court also stated, "Defendant Alexander is required to pay restitution in the amount of $15,049,500."
The court's decision came more than three years after Alexander was first charged and more than a year after he pleaded guilty in a parallel criminal case.
EminiFX was launched in 2021 and quickly attracted over 25,000 investors, raising more than $262 million in just eight months. The company promised weekly returns of 5% to 9.99% through a so-called "robot-advisor account," which allegedly used automated trading strategies in cryptocurrency and forex markets.
In reality, court documents show that the platform suffered net losses of at least $49 million and never implemented the claimed technology.
According to investigators, Alexander withdrew at least $15 million for personal use, paying credit card bills, buying luxury cars, and withdrawing cash. Meanwhile, investors' funds were being withdrawn from the mixed funds of new participants.
Alexander's downfall began in May 2022 when prosecutors and the Commodity Futures Trading Commission (CFTC) filed parallel lawsuits. In the criminal case, he pleaded guilty to commodity fraud and was sentenced to nine years in prison, along with an order to pay $213 million in restitution.
The civil case, concluded with Caproni's ruling, adds a parallel order for restitution and return of unlawfully obtained profits, although any payments toward restitution "must be credited against his obligation to return unlawfully obtained profits," according to the court's ruling.
The court-appointed administrator overseeing the return and distribution of assets since 2022 began distributing the recovered funds to victims earlier this year after the distribution plan was approved in January.
According to CertiK, losses from cryptocurrency hacks, fraud, and exploits reached $2.47 billion in the first half of 2025. In the second quarter, losses totaled $800 million from 144 incidents, a 52% decrease in asset value and 59 fewer hacks than in the first quarter; however, the total annual volume has already increased by nearly 3% compared to 2024.
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