FX and Crypto Trading Platform CEO Charged for $59 Million Fraud

The authorities in the United States have charged Eddy Alexandre with commodities fraud and wire fraud offenses for his activities with the cryptocurrency and forex trading platform, EminiFX.

Announced on Thursday, Alexandre headed the trading platform and allegedly solicited more than $59 million in investments from hundreds of individual investors. He made false representations about the trading platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term and lured investors with bogus promises.

Another 'Too Good to Be True' Scheme

According to the complaint, Alexandre started operations of EminiFX in September 2021 and continued until this month. He marketed it as a platform where investors can earn solid passive income with automated forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term and crypto trading.

He promised around 5 percent as a weekly return that would double their investments in only five years. He claimed that that platform is using some new 'secret' technology for trading automation.

“In reality, no such technology existed,” said Damian Williams, the US Attorney.

The authorities found that Alexandre did not even invest the entire capital amount from the investors for trading. He even sustained a loss of more than $6 million on the limited portion of funds that he did invest.

Alexandre did not disclose any of the losses to his investors. Rather, he published false reports showing at least a 5 percent weekly return from the investments. He even promised the investors that they could withdraw or re-invest the funds.

But, his misdeeds did not stop there. He misdirected at least $14.7 million of the investors’ capital to his personal account and even used the funds to purchase a luxury car.

“As in any of the financial markets, the foreign exchanges offer high return potential, but investors should beware of the downside risks of false claims and get rich quick schemes that oftentimes are too good to be true,” Williams added.

The US authorities charged Alexandre with one count of commodities fraud and one count of wire fraud. The first one carries a maximum prison time of ten years, while the other 20 years. He was arrested on Thursday morning.