Crypto Scammer Rakes in $250M with Fake Trading Firm, Leaves Loot Untouched
- Brandon Davis
- February 13, 2023
- Crypto, Gaming, News
- Crypto
- 0 Comments
The head of EminiFX, a fraudulent platform for cryptocurrency and foreign exchange, has admitted to deceiving investors and embezzling almost $250 million.
Eddy Alexandre’s fraudulent activities and personal expenditures
Eddy Alexandre the CEO of the supposed crypto trading website EminiFX lured in a large number of investors by promising them 5% weekly returns and claimed to be using a “Robo-Advisor Assisted account” for trading, as stated by the office of Damian Williams, the United States Attorney for the Southern District of New York.
He may have faked the weekly returns, but that didn’t prevent Eddy Alexandre from flaunting regular income statements to his investors, demonstrating consistent growth. However, he confessed to deceiving investors by manipulating the weekly returns to attract them to his cryptocurrency investment scam. The US Attorney for the Southern District of New York, Damian Williams, stated that Alexandre embezzled $14.7 million into his own account.
Despite having amassed nearly a quarter-billion dollars through the scam, Eddy Alexandre’s expenditure was not entirely lavish. For instance, he bought a $155,000 BMW, which, by all accounts, is not a particularly luxurious expense.
Comparing Alexandre’s losses to other fraudulent cases
According to Williams’ office, Alexandre did invest some of the funds, but he sustained losses amounting to millions of dollars. This information was not disclosed to the investors. In contrast, Sam Bankman-Fried, who allegedly misappropriated $10 billion from his FTX exchange customers, is believed to have lost about $8 billion of it.
Alexandre admitted guilt on one count of commodities fraud, which carries a jail sentence of up to 10 years. Despite the severity of the crime, the fact that he invested and lost some of the funds means that the damage could have been even more significant.
