Securities Regulation Daily Wrap Up, FRAUD AND MANIPULATION—S.D.N.Y.: CFTC wins $228M judgment in major Ponzi scheme case, (Aug 20, 2025)
Organizations Mentioned:Eminifx Inc.
A federal court granted summary judgment to the CFTC, holding EminiFX and its owner liable for fraud, unregistered trading activities, and ordering $228.6 million in restitution.
The CFTC won summary judgment against Eddy Alexandre and his company, EminiFX, for violating the Commodity Exchange Act. EminiFX, billed as an “investment club” offering cryptocurrency and forex trading through a supposed “Robo-Advisor Assisted Account,” drew in more than $262 million from tens of thousands of investors in just eight months. The company advertised weekly returns of 5–10% and referral bonuses, but in reality it lost over $49 million, while Alexandre diverted at least $15 million for personal expenses. Investors were repaid with pooled funds, revealing a Ponzi scheme (CFTC v. Alexandre, No. 1:22-cv-03822-VEC (S.D. N.Y. Aug. 19, 2025)).
The court ruled that Alexandre and EminiFX were liable for each other’s misconduct, as Alexandre exercised total control over the company. In a parallel criminal case, Alexandre pled guilty to commodities fraud, admitting the ROI figures were fabricated and the “RA3” trading technology never existed. That plea barred him from disputing liability in the civil case. Even apart from the plea, the court found overwhelming evidence of fraud, including false profit claims and misrepresentations about automated trading. The court further held that EminiFX operated as an unregistered commodity pool operator and Alexandre acted as its unregistered associated person.
The court ordered restitution of $228.6 million to investors, reflecting deposits minus withdrawals, and $15 million in disgorgement representing Alexandre’s personal misappropriations. Because all funds were commingled, restitution payments offset disgorgement obligations. The court rejected Alexandre’s defenses, including inadequate discovery and accounting objections.
The case is No. 1:22-cv-03822-VEC.
Judge: Caproni, V.
Attorneys: Daniel C. Jordan for the CFTC. Eddy Alexandre, pro se.
Companies: Eminifx Inc.
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