Crypto, forex platform CEO pleads guilty to $248M fraud scheme
Eddie Alexander, CEO of alleged cryptocurrency trading platform EminiFX, pleaded guilty to commodity fraud in New York District Court, agreeing to pay millions to investors who lost funds due to his “cryptocurrency investment scam.”
United States Department of Justice (DOJ) announced On Feb. 10, Alexander filed a guilty plea to one count of goods fraud and will pay more than $248 million in forfeiture along with restitution that has yet to be determined.
Alexander was arrested and charged in May for his role in EminiFX and initially pleaded not guilty, but modified his statement on 10 February. He faces a maximum sentence of 10 years in prison.
According to U.S. Attorney for the Southern District of New York Damian Williams, from approximately September 2021 to May 2022, Alexander operated a cryptocurrency and forex trading platform and “raised more than $248 million in investment from tens of thousands of individual investors.”
Williams said Alexander stated that EminiFX could generate “at least 5% weekly returns”, but in fact the CEO did not invest a “significant portion” of the funds and “even used some of the funds for personal purchases”.
He touted EminiFX as a passive income platform that used a secret new technology to automate cryptocurrency and foreign exchange trading that “guaranteed” a claimed return on investment.
Alexander refused to tell the investors what the technology was and promised they would double their money within five months. Investors in the scheme were falsely informed that they had earned the claimed 5% profit.
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In fact, Alexander lost millions of dollars on funds he invested, which he did not disclose to investors.
He also transferred about $14.7 million to his personal bank account and used about $155,000 to buy BMWs and more to make payments to Mercedes Benz.
Some EminiFX investors supported Alexander despite the fraud he committed.
A handful traveled from overseas to attend an August plea hearing, Bloomberg reported on August 10. report. One supporter stated that the case against Alexander was racist.
He is also facing a separate civil suit from the Commodity Futures Trading Commission. sue Alexander for “fraudulent extortion and misappropriation” related to the trading of cryptocurrencies and foreign exchange.
Credit : cointelegraph.com