Court Orders EminiFX and Founder Eddy Alexandre to Pay $288 Million Over Crypto Ponzi Scheme

A federal court has ordered the now-defunct EminiFX Inc. and its founder, Eddy Alexandre of Valley Stream, New York, to pay more than $288 million, closing out one of the CFTC's longer-running crypto fraud cases, the regulator announced today.

The U.S. District Court for the Southern District of New York granted the CFTC's motions for summary judgment, injunctive relief, and a civil penalty, according to the CFTC's October 19, 2026 release. The orders require the defendants to pay $228,576,962 in restitution to defrauded investors, to disgorge $15,049,500 in unlawful gains (offset by any restitution paid), and to pay a $45,148,500 penalty.

The case dates to the CFTC's May 12, 2022 complaint. Per the court's summary judgment order as quoted by the CFTC, EminiFX pitched itself as an "investment club" offering an affordable, easy route into cryptocurrency and forex trading "using the latest technology available." Over roughly eight months of operation, tens of thousands of investors sent in more than $262 million. The defendants reported what the court called "astonishing" returns of 5% to 9.99% per week.

The returns weren't real. The CFTC says EminiFX booked net losses exceeding $49 million, of which at least $15 million came from Alexandre misappropriating investor money for his own use. The court's language was blunt: "Simply put, EminiFX was a Ponzi scheme, and investors' decisions to give their money to [d]efendants was predicated entirely on fraudulent misrepresentations."

Alexandre is already serving a nine-year prison sentence from a parallel criminal case brought by the U.S. Attorney's Office for the Southern District of New York.

Key facts

• Total ordered: over $288 million — $228,576,962 restitution, $15,049,500 disgorgement, $45,148,500 penalty (CFTC release 9311-26, Oct. 19, 2026).
• Investor contributions: more than $262 million over ~8 months, from tens of thousands of investors (CFTC, citing the court order).
• Reported returns: 5% to 9.99% per week — described by the court as "astonishing" (CFTC).
• Actual performance: net losses over $49 million; at least $15 million misappropriated by Alexandre (CFTC).
• Recovery so far: as of July 2026, over $98 million returned to more than 28,000 investors via a court-appointed receiver (CFTC).
• Alexandre: serving nine years in prison from a parallel DOJ action (CFTC).

The real-world read

The headline number is $288 million; the number that matters to victims is $98 million — what the receiver had actually clawed back and distributed as of July 2026. The CFTC says so itself, cautioning that repayment orders "may not always result in the recovery of lost money" when the wrongdoers lack sufficient assets. With over $262 million in and $98 million recovered, the gap is large. The "5% to 9.99% per week" pitch is the tell that should have been obvious up front: no legitimate crypto or forex strategy pays that, and here it was funding withdrawals with new deposits until the money ran out. This is an enforcement outcome, not a reimbursement — the court can order $288 million without conjuring assets that no longer exist.

Opinion, and whose

The CFTC frames the orders as a win for defrauded investors and a warning to fraudsters. Its own caveat about collectability is the more sober note, and it belongs to the CFTC too.

Sources

• CFTC Press Release 9311-26 (Oct. 19, 2026) — primary source for all figures, the court's quoted findings, the penalty structure, recovery totals, and Alexandre's sentence. Government enforcement announcement; not marketing.

This is news reporting, not financial or legal advice.