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 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  and also 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  and crypto trading.

He promised around a 5 percent 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 US Attorney Damian Williams.

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

Alexandre did not disclose any of the losses to his investors. Rather, he published false reports showing at least 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.

The authorities in the United States have charged Eddy Alexandre with commodities fraud and wire fraud offenses for his activities with 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  and also 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  and crypto trading.

He promised around a 5 percent 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 US Attorney Damian Williams.

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

Alexandre did not disclose any of the losses to his investors. Rather, he published false reports showing at least 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.

Source: https://www.financemagnates.com/forex/fx-and-crypto-trading-platform-ceo-charged-for-59-million-fraud/