EminiFX founder to pay $228 million in Ponzi scheme case

Key points:

• Investors lost more than $262 million during EminiFX’s eight months of operation.
• The court ordered Eddy Alexander to pay $228,5 million in damages and $15 million in compensation.

A federal court in New York ruled that the crypto platform EminiFX and its founder, Eddy Alexander, must pay more than $228 million for organizing a Ponzi scheme. According to Judge Valerie Caproni’s ruling, Alexander is also required to pay an additional $15 million in illegally obtained profits.

The decision was made in summary proceedings following a lawsuit filed by the Commodity Futures Trading Commission (CFTC). The trial took more than three years from the initial charges and ended a year after Alexander pleaded guilty in a criminal case.

How EminiFX operated and what it is accused of

EminiFX began operating in 2021 and attracted more than 25 000 investors in eight months. It raised $262 million by promising returns of 5% to 9,99% per week through its “Robo-Advisor Account” — a supposedly automated trading system for cryptocurrencies and forex.

In reality, no such technology existed. The court found that the project had incurred losses of at least $49 million, and payments were made at the expense of new investors. Alexander personally withdrew at least $15 million to pay off loans, cash, and purchase expensive cars.

Criminal case and sentence

In 2022, the US Attorney’s Office and the CFTC filed lawsuits against Alexander. He pleaded guilty to fraud and, in 2023, was sentenced to nine years in prison and ordered to pay $213 million in restitution.

The new court ruling confirmed two obligations: to pay $228,5 million to the affected investors and to return $15 million in illegally obtained profits. At the same time, the court clarified that these amounts would be counted toward the total compensation amount to avoid double payments.

Return of funds to investors and market conditions

The court-appointed administrator, who has been overseeing the return of assets since 2022, began distributing funds in early 2025 after the compensation plan was approved in January. The first victims have already received payments.

Hacken: Crypto Industry Losses Reach $3.1 Billion in the First Half of 2025

We discuss key incidents, the consequences for the industry, and ways to improve the security of decentralized projects

Read more

According to Hacken, losses in the crypto industry reached $3,1 billion in the first half of 2025, of which approximately $2,43 billion was due to hacks and fraud.