$248M Crypto Fraud Could Put This CEO in Prison for 10 Years

Sahana Kiran
Source – Unsplash

The crypto-verse has seen an increase in the frequency of scams and hacks. Scams are not virtually beyond the control of networks and their executives, but hacks are. A majority of the time, cryptocurrency cons are carried out by fraudulent platforms. Most of these barely thrive as they sooner or later come under the scrutiny of law enforcement officials. Similarly, Eddy Alexandre the CEO of EminiFX went on to plead guilty after being accused of carrying out a $248 million scam.

According to a recent announcement by the United States Department of Justice [DOJ], Alexandre issued a guilty plea. This however was done for just one count of commodities fraud. In addition to this, he has agreed to pay up a total of $248 million to the scammed investors. Elaborating on how he could face up to 10 years in prison, the DOJ wrote,

“The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. Sentencing before Judge Cronan is scheduled for July 12, 2023, at 4:00 p.m.”

Alongside this, the Commodity Futures Trading Commission [CFTC] has filed another civil lawsuit against him, alleging that Alexandre engaged in “fraudulent solicitation and misappropriation” in connection with the trading of cryptocurrencies and foreign currencies.

Here’s what went down with crypto and forex firm EminiFX

Alexandre was accused of orchestrating the crypto scam and running it from September 2021 to May 2022. During this time, he duped investors of an astounding $248 million. Thousands of naive individuals were sadly part of the scam. The EminiFX CEO was charged back in May 2022. However, he pleaded not guilty.

The U.S. Attorney for the Southern District of New York, Damian Williams revealed that EminiFX lured investors with unrealistic returns. He further noted that Alexandre claimed EminiFX could provide “weekly profits of at least 5%.” But the CEO really didn’t invest a significant amount of the money and even employed some of the “funds for personal purchases.” This included the transfer of around $14.7 million to his own account. In addition to this, he spent about $155,000 on a BMW and more on a Mercedes Benz.