CFTC Wins $228.5M Judgment Against EminiFX AI Crypto Pyramid Scheme

The U.S. Commodity Futures Trading Commission (CFTC) has achieved a significant regulatory victory, securing a federal court judgment against Eddie Alexandre and his company EminiFX. This landmark ruling mandates the repayment of $228.5 million to victims of a cryptocurrency pyramid scheme, signaling a firm stance against fraudulent enterprises that exploit emerging technologies like artificial intelligence (AI) to deceive investors. The case highlights the critical need for vigilance in the digital asset space, where sophisticated technological claims often mask illicit financial operations.

• A federal court judgment was secured against Eddie Alexandre and his company EminiFX.
• The ruling mandates the repayment of $228.5 million to victims of a cryptocurrency pyramid scheme.
• The scheme exploited trust within the Long Island Haitian community and Alexandre’s own church.
• EminiFX falsely promised weekly returns of up to 9.99% through “AI-based trading technology.”
• Alexandre had previously been sentenced to nine years in prison in July 2023 for related fraud.
• He funneled at least $15 million of investor funds into personal accounts for luxury items.

Understanding the Deceptive EminiFX Scheme

The scheme, orchestrated by Eddie Alexandre, preyed on the trust within the Long Island Haitian community and his own church. EminiFX promised investors weekly returns of up to 9.99% through a purported “AI-based trading technology” and a “Robo-Advisor Assisted Account (RA3)” mechanism. However, investigations revealed that the platform’s actual performance was dismal, incurring losses in 24 out of 30 weeks of operation. Federal prosecutor Damian Williams described Alexandre’s actions as “brazen,” citing a profound abuse of trust for personal enrichment.

Consequences and Restitution for Victims

The court’s decision covers over 25,000 individuals who invested in EminiFX between September 2021 and May 2022. Alexandre himself had previously been sentenced to nine years in prison in July 2023 following a criminal conviction related to the fraud. Beyond the direct investment losses, Alexandre funneled at least $15 million of investor funds into personal accounts, using the illicit gains to acquire luxury items, further underscoring the egregious nature of the fraud. In a crucial step towards restitution, court-appointed receivers commenced the distribution of recovered funds to investors in January 2025, with efforts to repatriate assets continuing.

Broader Implications and Regulatory Vigilance

The CFTC emphasized that while advanced technologies like AI and cryptocurrencies offer potential, they do not inherently shield investors from fraud. This regulatory action parallels broader enforcement efforts, such as the recent conviction of Tornado Cash co-founder Roman Storm for unlicensed money transmission, reflecting a growing global push to hold individuals accountable for illicit financial activities within the cryptocurrency ecosystem.