The FBI has arrested the CEO of EminiFX, the NY cryptocurrency platform, for allegedly fraud

The FBI has arrested the CEO of EminiFX, the NY cryptocurrency platform, for allegedly fraud ...

Cryptocurrencies have not only struggled with falling values lately, but authorities are uncovering more and more information that has engulfed the sector.

Tax authorities in the United States have said that they were following 50 separate investigations into non-fungible tokens and other aspects of the crypto industry. On May 13, they were also establishing evidence of a $1 billion Ponzi scheme in the cryptocurrency market.

Beware of Crypto Fraud and Scams

The FBI has also apprehended on May 12 the CEO of EminiFX, a crypto trading platform located in New York, on a count of commodities fraud and one count of wire fraud related to an alleged Ponzi scam that fraudulently paid $59 million to investors.

According to the New York Business Journal, Eddy Alexandre, 50, was arrested on charges which can lead to a combined maximum sentence of 30 years in prison. According to the FBI, Alexandre claimed from September 2021 to May 2022 that he had solicited over $59 million in investments on the website, guaranteeing that their earnings would be increased by 5% to 9.99% weekly returns. According to the FBI complaint, Alexandre''s statements about weekly earnings were false and EminiFX had

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According to a complaint, Alexandre allegedly commercialized EminiFX as an investment platform where investors could earn passive income through automated investments in cryptocurrency and foreign exchange trading.

According to the complaint, Alexandre received $59 million from individuals to invest and misdirected $15 million to his personal checking account. He allegedly transferred $9.04 million to an electronic trading platform that he had opened in his name in December 2019, which was before he established EminiFX, and suffered about $6.27 million in trading losses. He also transferred $30,000 of investor funds to a digital cryptocurrency wallet account registered in his name.

Alexandre allegedly used $155,000 to purchase a BMW automobile and $13,000 on other vehicle payments, including $10,000 for a Mercedes Benz. Another $15,000 was spent on rent, to provide office space for EminiFX, and to organize events on behalf of the company.

A substantial amount of investor funds was used to cover attorney fees, including checks for $100,000 and $20,000, each with the word "retainer" being included in the complaint.

Some Investors Able to Cash Out

Although many investors are likely to lose money on their EminiFX investments, the FBI complaint claims that certain investors successfully removed funds from the platform. Bank account activity suggests that EminiFX failed to invest the majority of investor funds, and it appears that the only way the platform could fund investor withdrawals was to utilize the funds of existing investors in a traditional Ponzi strategy.

According to a complaint, EminiFX accepted investor deposits in US dollars and accepted investor funds and made payments in bitcoin.

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