According to federal prosecutors, a New York-based CEO has been charged for participating in a $59 million cryptocurrency fraud that used fake technologies to raise further funds.
According to US Attorney Damian Williams, Eddy Alexandre, the CEO of EminiFX, a supposed cryptocurrency, and forex trading platform, was charged with commodities fraud and wire fraud.
In conjunction with the EminiFX trading platform, it is claimed that Alexandre solicited investments totaling more than $59 million from hundreds of individual individuals.
On Thursday, May 12, he was taken into custody and was set to appear in court later that day.
According to prosecutors, Alexander ran EminiFX, a claimed investment platform, between September 2021 and May 2022 and recruited hundreds of investors.
Investors are alleging that Alexandre advertised the firm as an investment platform through which they could profit massively from automated investments in cryptocurrencies and foreign exchange trading, among other things.
According to Williams, Alexandre promised his investors “guaranteed” huge profits utilizing a new technology he claimed to be hidden.
By using a “Robo-Advisor Assisted account,” Alexandre claimed that investors might double their money in five months by receiving a 5% weekly return on their investment with this account.
Investigators believe Alex called his technology a “trade secret,” refusing to divulge its nature to investors and claiming to have earned investors’ portion of the investment, which could be withdrawn or re-invested. He had not.
When asked about Alexandre’s knowledge of a 5% weekly return, Williams stated that the firm didn’t make any money for the investigators.
Alexandre allegedly lost more than $6 million of his own money while running the fraud, which he did not reveal. Williams said he misappropriated at least $14.7 million in investor funds to maintain his extravagant lifestyle instead of using them as promised.
Investor funds were used to buy Alexandre a BMW and make automobile payments, including Mercedes Benz, for $133,000 in investor monies.
One case of commodities fraud and one count of wire fraud were filed against Alexandre. He may face up to 20 years in jail if convicted on the charges.