EminiFX: A Cryptocurrency and Forex Trading Platform
EminiFX is a platform that offers services in the trading of cryptocurrency and forex. Functionally, EminiFX operates as a multi-level marketing program. This business model encourages its older, established investors to bring new users to the platform in the hopes of expanding the user base and potentially growing the investment pool.
Legal Trouble and the EminiFX Scam
A recent legal verdict was handed down, dating over four months since the primary orchestrator of a crypto scam pleaded guilty to charges of merchandise fraud. The accused individual was charged formally by the platform EminiFX where it was found that more than 25,000 investors were defrauded. The total amount scammed from these individuals approximated $249 million. U.S. District Judge John Cronan in Manhattan characterized this fraudulent operation as a sizable scam, primarily impacting the Haitian-American community.
Department of Justice Involvement
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The United States Department of Justice (DOJ) publicly announced on February 10 that the fraudster, Alexandre, had pleaded guilty to one count of merchandise fraud. As consequence of his actions, Alexandre is required to forfeit roughly $249 million. This considerable sum represents the proceeds that Alexandre ill-gotten from his illegal actions.
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Alexandre was initially arrested and formally charged in May 2022 for the role he played in the fraudulent operations at EminiFX. Although he initially pleaded not guilty to the charges leveled against him, Alexandre changed his plea on February 10.
The Deception of EminiFX Investors
Reportedly, Alexandre made enticing financial promises to potential investors. These prospective investors were told that they could potentially double their invested money in as little as typically five months. This kind of attractive return rate of 5% per week drew in more than 25,000 investors to participate in his fraudulent plan.
However, Alexandre only invested a small fraction of the monetarily user contributions. The majority of the money amassed was used by Alexandre for personal expenses. This included depositing millions of dollars in a personal bank account, purchasing a new luxury BMW car, and covering business-related fees. The business-related costs consisted of leasing office space and retaining legal counsel with attorneys. Without agreeing to a plea agreement, Alexandre is possibly facing a sentence of up to 30 years in prison.
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