FBI Arrests CEO of NY-Based Crypto Platform for Alleged Fraudulent Scheme

A fraudulent scheme has been filed against the CEO of a crypto.

Eddy Alexandre offered its investors a weekly return of 5%.

The Securities and Commodities Fraud Task Force of the Office is investigating the matter.

The FBI has detained Eddy Alexandre, the CEO of cryptocurrency trading platform EminiFX, on charges of commodities and wire fraud.

According to the US Department of Justice, between September 2021 and May 2022, Alexandre operated a fraudulent crypto investment and trading business, soliciting $59 million in investments from hundreds of individuals.

False promises and high-end goods

Alexandre allegedly made false promises of huge returns, claiming that users of the site would become millionaires in a matter of years if they invested $100,000.

"In truth, no such technology existed," said US Attorney Damian Williams, "since Alexandre is claimed to have invested very little of their money – most of which he lost – and moved the majority of it to his own personal accounts to purchase for luxury products for himself."

"As charged, Mr. Alexandre solicited millions of dollars from naïve investors to whom he 'guaranteed' weekly returns of 5% via his trading platform utilizing a new technology he neglected to reveal," FBI Assistant Director-in-Charge Michael J. Driscoll stated. He subsequently utilized a considerable percentage of the investment monies he collected to acquire lavish pleasures for himself, as did many other unscrupulous performers before him."

Alexandre is accused of transferring at least $14.7 million in investor cash to his personal bank accounts rather than investing them as promised. He also spent $155,000 in investor monies on a BMW automobile and $13,000 on car payments, according to the release.