The post CFTC Wins Summary Judgment in $228M Crypto Ponzi Case appeared on BitcoinEthereumNews.com.

In brief A federal judge ordered Eddy Alexandre and EminiFX to pay $228.5 million in restitution to victims of a crypto Ponzi scheme that promised fake weekly returns of 5% to 9.99% using nonexistent “AI trading technology.” Alexandre exploited his position of trust within Long Island’s Haitian community and his own church congregation to recruit over 25,000 investors between September 2021 and May 2022. The CFTC’s civil victory follows Alexandre’s July 2023 criminal sentencing to nine years in prison, with court-appointed receivers already distributing recovered funds to defrauded investors since January 2025. A federal judge has ordered Eddy Alexandre and his company EminiFX to pay $228.5 million in restitution to investors who lost money in what authorities called a ‘brazen’ crypto Ponzi scheme that bilked over 25,000 people out of more than $248 million. U.S. District Judge Valerie Caproni granted summary judgment Tuesday in favor of the Commodity Futures Trading Commission in its civil enforcement action against Alexandre.  The ruling comes after Alexandre was already sentenced to nine years in federal prison last July for his role in operating the fraudulent EminiFX trading platform. Alexandre, who represented himself, opposed the CFTC’s motion but failed to present evidence disputing the fraud claims.  The CFTC set restitution based on investor contributions minus withdrawals, with Judge Caproni adding $15 million in disgorgement, offset by restitution payments. “Fraud persists, now often cloaked in high-tech buzzwords like AI and crypto,” Even Alex Chandra, partner at IGNOS Law Alliance, told Decrypt, adding how “rigorous verification is essential” for ventures promising outsized returns. “Groups with limited financial literacy are prime targets,” he added, making investor education crucial for community protection. “No matter how trendy the technology, labels like AI or crypto do not prevent fraudulent activity.” U.S. Attorney Damian Williams previously called Alexandre’s conduct “brazen,” noting…

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Filed under: News - @ August 20, 2025 6:26 pm