According to Inner City, the founder of crypto and forex scam site, Eddy Alexandre, is expected to plead guilty to the $59 million fraud charges against him. The change of plea hearing for Alexandre will take place on February 10, 2023.
Alexandre pleaded not guilty in May last year to fraud charges after the FBI arrested him. He promised investors at least 5% returns on investments weekly but siphoned their cash for personal use.
Investigations revealed that only a fraction of the $59 million collected from customers was used to invest in cryptocurrencies. Instead, the CEO spent it on fleets of expensive cars. He transferred a reasonable portion of the cash (approximately $14 million) to his personal account.
The Commodity Futures Trading Commission (CFTC) also filed a complaint, stating that they alleged $59 million was not used for trading purposes. The regulator said that Alexandre used only $9 million to trade at a futures commission merchant. The CFTC also claimed that Alexandre lost $6 million trading at an online brokerage.
Supporters Believe Alexandre is Racially Abused
Despite the wire fraud and commodity fraud charges against Alexandre, many investors on the platform still believe in the accused. Many of the site’s investors have rallied around the CEO and protested that prosecutors dismiss the case and set Alexandre free.
His supporters have claimed Alexandre is leading them to amass a life-changing fortune. They also started a change.org petition to defend him, arguing that the case against EminiFX’s founder is racist.
CFTC Orders EminiFX to Exit Crypto
Following the issues surrounding EminiFX, the Justice Court appointed David Castleman to receive the firm. David Castleman is a lawyer practicing in the New York and Los Angeles offices of Raines Feldman LLP.
The CFTC has ordered EminiFX to sell all its crypto holdings, which the receiver agrees to. The commodities watchdog stated that cryptocurrency is volatile and does not guarantee capital protection. The regulator also noted that since EminiFX will eventually convert the digital assets to currency to share amongst investors, the crypto firm should divest from cryptocurrencies.
The court approved the CFTC’s order, advising EminiFX to venture into the money market. It suggested that the money market was more stable and would provide returns for the firm until the pendency of the receivership elapsed.
