CFTC Slaps $228M Judgment on Pastor Behind Crypto Ponzi Scheme

U.S. Commodity Futures Trading Commission (CFTC) won a $228.6 million judgment against Eddy Alexandre, a New York pastor who defrauded over 25,000 investors of $262 million through a crypto Ponzi scheme. Operating under EminiFX, Alexandre promised 5–9.99% weekly returns using a nonexistent “robo-assisted advisor” and AI trading technology, exploiting his position in Long Island’s Haitian church community.

The U.S. District Court for the Southern District of New York ruled that Alexandre’s scheme, active from September 2021 to May 2022, misappropriated funds to pay earlier investors, a classic Ponzi tactic, while funneling millions for personal use, including luxury purchases. The judgment includes $228.5 million in restitution for victims, with court-appointed receivers distributing recovered funds since January 2025. This follows Alexandre’s July 2023 criminal conviction and nine-year prison sentence for commodities fraud.

The CFTC’s victory, reported by CryptoNews, underscores its aggressive crypto enforcement, with $17.1 billion in 2024 recoveries, including $12.7 billion from the FTX collapse. “This ruling sends a strong message against fraudulent crypto schemes exploiting trust,” said a CFTC spokesperson. Many victims, primarily retail investors and congregants, lost life savings, highlighting the need for due diligence in unregulated markets.

The case reflects broader U.S. efforts to curb crypto fraud, with regulators like the CFTC and SEC intensifying oversight. Investors are urged to verify claims of guaranteed returns, especially from trusted figures. As crypto adoption grows, such enforcement actions aim to protect investors and restore market confidence.