EminiFX CEO Eddy Alexandre Set to Plead Guilty to Role in Alleged $59M Ponzi Scheme
The CEO of cryptocurrency and forex trading platform EminiFX is now expected to plead guilty to his role in an alleged fraud that federal prosecutors say duped investors out of $59 million.
Eddy Alexandre, 51, of Valley Stream, N.Y., was arrested in May 2022 and charged with wire fraud and commodities fraud, to which he initially pleaded not guilty. Court records show that Alexandre will change his plea in a new hearing set for Friday afternoon. Inner City Press first reported the news.
According to prosecutors, Alexandre – who, before starting EminiFX was a long-time cybersecurity engineer – lured investors into his scheme by promising to double their money within five months, promising 5% weekly returns he allegedly generated through a secretive robo-advising technology.
However, Alexandre allegedly invested only a small portion of user funds and spent the rest on either himself – putting millions of dollars in his personal bank account and splashing out on a new BMW – or on business-related expenses, like renting an office and hiring lawyers, prosecutors said.
Authorities say he kept the charade going by providing investors with fake account statements showing their investments were growing between 5% and 10% each week.
Read more: New York Man Arrested, Charged With Fraud for Alleged Role in $59M Crypto Pyramid Scheme
Despite Alexandre’s alleged fraud, however, many of his customers have continued to support him. At Alexandre’s plea hearing last year, supporters from around the world traveled to cheer him on, telling Bloomberg that EminiFX was legitimate, Alexandre was helping them and the case against Alexandre, who is Black, was racist.
Without a plea deal, Alexandre faces up to 30 years in prison.