Eminifx Founder Ordered to Repay $228M Following Ponzi Scheme Verdict

This judgment follows the court’s determination that Eminifx operated as a Ponzi scheme, defrauding tens of thousands of investors.

The U.S. Commodity Futures Trading Commission (CFTC) secured summary judgment against both Alexandre and his platform, holding them jointly liable for the $228.5 million restitution amount. Additionally, Alexandre must pay $15 million in disgorgement for personal financial benefits he obtained through the fraud, including luxury expenses funded by defrauded investor capital.

Launched in 2021, Eminifx attracted over 25,000 investors and raised approximately $262 million. The platform promised weekly returns between 5% and nearly 10%, claiming to use automated “Robo-Advisor Assisted Accounts” for crypto and forex trading. However, investigations revealed the technology was never deployed, and the firm sustained significant losses. New investor funds were used to pay earlier investors, a hallmark of Ponzi schemes.

Alexandre’s legal troubles began in May 2022 with criminal and civil actions alleging commodities fraud. He pleaded guilty in the criminal case and received a nine-year prison sentence along with a $213 million restitution order. The civil ruling reinforces the financial penalties and authorizes the court-appointed receiver to distribute recovered assets to victims after a plan was approved earlier this year.

The ruling highlights ongoing risks in the crypto sector, where scams and hacks led to $2.47 billion of losses in the first half of 2025 alone. Proactive enforcement and legal clarity remain crucial to protecting investors in decentralized finance and related markets.

In a recent development, North Korea’s Lazarus cybercrime group has been accused of carrying out a £17 million cryptocurrency theft from British-registered exchange Lykke, an attack described as one of the largest to hit a UK-based digital asset company. The claim was detailed in a recent report by The Telegraph, citing findings from the Office of Financial Sanctions Implementation (OFSI).