In a landmark ruling on August 20, a U.S. federal judge concluded that EminiFX, a leveraged trading platform, was a Ponzi scheme engineered by founder Eddy Alexandre. The court ordered Alexandre to repay $228 million in principal, interest and penalties to defrauded investors.
The U.S. District Court for the Southern District of Florida found that EminiFX marketed itself as a sophisticated automated trading system with guaranteed high returns. Prosecutors proved that Alexandre misappropriated new investor funds to pay returns to earlier participants, rather than generating profits through genuine trading algorithms.
Financial records revealed that EminiFX processed over $300 million in client deposits between 2020 and 2024. The court’s final accounting showed a net shortfall of $228 million after accounting for partial withdrawals by investors and operational expenses.
Judge Kenneth Marra emphasized the severity of the deception: “Victims were enticed by false promises of 20% monthly returns, sold on manipulated performance reports and fabricated trading logs.” The ruling imposes restitution, civil penalties and an injunction barring Alexandre from future securities activities.
The U.S. Securities and Exchange Commission (SEC) and Justice Department praised the decision. SEC Chair Paul Atkins stated: “This enforcement action underscores our commitment to protecting investors from fraudulent trading schemes in digital asset markets.”
The outcome may trigger similar claims against other retail trading platforms. Legal experts anticipate further scrutiny of automated trading services, emphasizing the need for robust disclosure and regulatory oversight as leverage products proliferate in the digital asset ecosystem.
Investors who suffered losses can file claims with the court’s restitution fund. Alexandre has the right to appeal within 30 days, though experts deem a successful reversal unlikely given the evidentiary record.
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