The FBI has detained Eddy Alexandre, the CEO of cryptocurrency trading platform EminiFX, on charges of commodities and wire fraud.
According to a the US Department of Justice official announcement, Alexandre ran a fraudulent crypto investment and trading platform and managed to collect $59 million in investments from hundreds of consumers between September 2021 and May 2022.
Alexandre allegedly made false promises of huge returns, claiming that users of the platform would become millionaires in a matter of years if they invested $100,000.
US Attorney Damian Williams said in a statement about the case that “in reality, no such technology existed, as Alexandre is alleged to have invested very little of their money – most of which he lost – and transferred most of it to his own personal accounts to pay for luxury items for himself.”
Assistant Director-in-Charge of FBI According to Michael J. Driscoll, “As alleged, Mr. Alexandre solicited millions of dollars from unwitting investors to whom he ‘guaranteed’ weekly returns of 5% through his trading platform using a new technology he refused to disclose. As with many greedy actors who have preceded him, he then used significant portions of the investor funds he solicited to buy expensive luxuries for himself.”
Alexandre allegedly diverted at least $14.7 million in investor monies to his own bank accounts rather than investing them as promised. According to the release, he used $155,000 in investor funds to buy a BMW automobile for himself and $13,000 on car payments.