O CEO of cryptocurrency exchange EminiFXEddy Alexandre, pleaded guilty to fraud against his company’s investors in a US court.
He created a platform that operated in the cryptocurrency and forex markets and raised $240 million from investors. That is, more than 1.2 billion reais were poured into his company.
Last Friday (10), US Attorney Damian Williams announced that the defendant had pleaded guilty to his crimes.
How did the cryptocurrency and forex broker practice fraud against investors?
According to the New York lawyer handling the case, Eddy confessed to luring victims with weekly promises of income. For example, customers thought that 5% per week would be earned with investments in the platform.
After clients’ funds arrived on the platform, the CEO of the cryptocurrency brokerage had lost funds for his personal expenses.
For Damian Williams, the case remains another warning for the cryptocurrency investment market, with millions of dollars in losses.
“Eddy Alexandre today admitted to luring investors into his cryptocurrency investment scam, earning weekly returns of at least 5%. Alexandre even left a significant portion of these investors’ money to invest and even used some of the proceeds for personal purchases. The Alexander scam caused investors to lose millions of dollars, and this case should serve as yet another wake-up call for cryptocurrency executives who are keeping a close eye on New York’s Southern District and ready to address any wrongdoing. on the markets. .”
Robot-assisted investments turned out to be fraud
EminiFX operations took place between 2021 and 2022, with estimates of US$248 million invested in the platform.
To give investors even more confidence, the CEO stated that all his operations had the help of a robot. That is, the company claimed to exploit the money with advanced technologies and low risks.
With the “commercial secret”, the promises to the affected customers contributed to a doubling of capital in two months, which in time turned out to be false. In addition to not giving the promised returns, the fake company also saw amounts go out for the purchase of a BMW and Mercedes-Benz rental.
Investigations against the suspect even involved the FBI and he could face up to 10 years in prison for the crimes. However, the fine will not be announced until July 2023. In addition, the defendant promised to return the amounts he stole from investors, the US court memorandum said.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
