CEO of Crypto, Forex site pleads guilty in US$248 million fraud case

WASHINGTON - The CEO of cryptocurrency and foreign exchange site EminiFX, Eddy Alexandre, pleaded guilty in a US$248 million investor fraud case, reported Sputnik quoting a statement from the US Justice Department.

Alexandre solicited more than US$248 million in investments from tens of thousands of investors after making false representations in connection with EminiFX, the Justice Department said on Friday.

"Eddy Alexandre admitted today to luring investors to his cryptocurrency investment scam by fabricating weekly returns of at least 5 per cent. In reality, Alexandre failed to invest a substantial portion of this investors’ money and even used some funds for personal purchases. Alexandre’s scam caused investors to lose millions of dollars," US Attorney Damian Willams said in the statement.

The case should serve as a warning to cryptocurrency executives that the Southern District of New York is closely watching and ready to prosecute any misconduct in the cryptocurrency market, Williams added.

Alexandre pleaded guilty to one count of commodities fraud and agreed to pay US$248,829,276.73 in forfeiture, as well as restitution in an amount to be specified by the court, the statement said.

The commodities fraud offense carries a maximum sentence of 10 years in prison, the statement said. The court is set to determine a sentence in July, it added. - BERNAMA