On July 18, Eddie Alexander, CEO of EminiFX, a cryptocurrency and forex trading platform, said: to rule to nine years in prison by US District Judge John B. Kronan.
Alexander was convicted of defrauding more than 25,000 investors out of more than $248 million through his fraudulent investment platform.
Detecting a fraudulent encryption scheme
Alexandre’s EminiFX promises investors passive income through automated investments in the cryptocurrency and foreign exchange markets.
The “Robo-Advisor Assisted Account” provided by EminiFX claimed to double investors’ funds in five months, attracting thousands to participate in the project.
However, the reality was far from the promised returns as investigations revealed that Alexander had not invested a large portion of the money entrusted to him by the investors.
Instead, he made up 5% weekly returns to attract new investors, leading them to believe their investments were growing steadily.
In truth, the platform has been operating as a Ponzi scheme, relying on new investments to pay returns to previous investors.
“This was calculated, planned and ongoing fraud, and the extent of the fraud is significant,” the US judge said.
Impact on Victims and Society – Statements of Witnesses in Court
The consequences of Alexander’s fraudulent actions were far-reaching. Alexander took advantage of his position of trust within his church and community to recruit new investors. His actions not only affected the financial lives of his victims, but also shattered the trust of the Haitian-American community of which he was a part.
Faucien-Baptiste, a victim who invested $25,000, challenged Alexander in court “Do you have a heart, Mr. Alexander? You invested in a Ponzi scheme that Mr. Alexander brought into the community. Mr. Alexander took this opportunity to rob the community.”
Another EminiFX user identified as Ermine Mompremier, He said“It was the best thing that could have happened to me. You were able to help me. It’s hard to see something that was so good become bad, people say.”
Alexander too Wire During the hearing, he said, “I am fully aware of the seriousness of my actions.” “I sincerely apologize to the court and to all those affected. This experience was a wake-up call…and I am willing to make amends.”
The ruling came at the end of a four-hour sentencing hearing that proved emotionally charged, as prosecutors, victims, the defense and Alexander’s supporters confronted each other inside the courtroom.
The sentencing of Eddie Alexander to nine years in prison and the requirement to pay compensation of nearly $214 million to the victims is an important step toward achieving justice for those affected by the fraudulent scheme.
Total crypto market cap still sitting above $1.16 trillion | Source: Crypto Total Market Cap on TradingView.com
Featured image by Wallin & Klarich, chart from TradingView.com
