Eddy Alexandre, EminiFX Ordered to Pay More Than $288 Million Over Crypto and Forex Ponzi Scheme

Published Nov. 3, 2026. Case statuses are current as of that date.

It billed itself as an "investment club" that gave everyday people an affordable way into cryptocurrency and forex trading. Tens of thousands of people sent it more than $262 million in just eight months. A federal court has now granted the CFTC's motions for summary judgment, writing: "Simply put, EminiFX was a Ponzi scheme."

The U.S. District Court for the Southern District of New York granted the Commodity Futures Trading Commission's motions for summary judgment, injunctive relief and a civil penalty against Eddy Alexandre of Valley Stream, New York, and his company EminiFX Inc., the CFTC announced on Oct. 19, 2026 [1]. Alexandre is already serving a nine-year prison sentence in a parallel criminal case.

How the scheme worked, according to the court

This section is based on the court's summary judgment order as described by the CFTC [1].

1. The pitch. EminiFX, which operated in Valley Stream and Manhattan, held itself out as an investment club offering "easy access" to cryptocurrency and forex trading using the latest technology.
2. The returns. The defendants reported "astonishing" returns of 5% to 9.99% per week.
3. The money. Over eight months of operation, tens of thousands of investors sent contributions exceeding $262 million.
4. The reality. EminiFX actually had net losses exceeding $49 million.
5. Misappropriation. At least $15 million of those losses came from Alexandre's misappropriation of investor funds for his own use.

The court wrote, as quoted by the CFTC: "Simply put, EminiFX was a Ponzi scheme, and investors' decisions to give their money to [d]efendants was predicated entirely on fraudulent misrepresentations." [1]

What the court ordered

• Restitution: $228,576,962 to defrauded investors.
• Disgorgement: $15,049,500 in unlawful gains (offset by any restitution paid).
• Civil penalty: $45,148,500.
• Injunctive relief against further violations.

The orders stem from the CFTC's May 12, 2022, complaint [1].

Money being returned

During the CFTC's lawsuit, a court-appointed receiver recovered millions of dollars in investor funds and other assets and is distributing them to investors. As of July 2026, more than $98 million had been returned to more than 28,000 investors, according to the CFTC. The agency cautions that orders requiring repayment may not always result in recovery, because wrongdoers may not have enough assets [1].

The criminal case

According to the CFTC, Alexandre is serving a nine-year prison sentence based on a parallel action for related conduct brought by the U.S. Attorney's Office for the Southern District of New York [1].

Why weekly returns are the giveaway

A return of 5% a week compounds to more than 1,100% a year. No legitimate trading strategy reliably produces that. In a Ponzi scheme, early investors are paid with later investors' money, so the scheme can survive only while new money keeps coming in.

Red flags

These are general warning signs of crypto and forex Ponzi schemes. They are not findings about any person named here.

• Weekly or daily returns promised or reported, especially steady ones.
• "Investment club" or membership language instead of registered investment products.
• Rapid growth through word of mouth, referral bonuses and community events.
• Account balances you can see only on the company's own dashboard.
• Unregistered operators. Anyone pooling money to trade forex or commodities for others generally must be registered with the CFTC and be an NFA member.

What to do if you're targeted

1. Check registration at cftc.gov/check and with the NFA's BASIC database.
2. Review the SEC's guide to Ponzi schemes on Investor.gov.
3. If you invested in EminiFX, follow updates from the court-appointed receiver, and beware of anyone who contacts you offering to "recover" your money for a fee — that's a common follow-up scam.
4. Report suspected fraud to the CFTC at cftc.gov/complaint, the SEC at sec.gov/tcr and the FBI at ic3.gov.

Case status (as of Nov. 3, 2026)

Defendant	Court / agency	Status as of Nov. 3, 2026	Source
Eddy Alexandre, Valley Stream, N.Y.	CFTC civil case, S.D.N.Y.	Summary judgment, injunctive relief and civil penalty granted (announced Oct. 19, 2026): $228,576,962 restitution, $15,049,500 disgorgement (offset by restitution), $45,148,500 penalty	[1]
Eddy Alexandre	Parallel federal criminal case (USAO S.D.N.Y.)	Serving a nine-year prison sentence	[1]
EminiFX Inc.	CFTC civil case, S.D.N.Y.	Same orders as above	[1]

Sources

1. Commodity Futures Trading Commission, "CFTC Secures Federal Court Orders Requiring Former Long Island Resident and His Firm to Pay Over $288 Million for Operating a Commodity Pool Ponzi Scheme," Release No. 9311-26, Oct. 19, 2026. https://www.cftc.gov/PressRoom/PressReleases/9311-26

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