EminiFX Founder Ordered to Pay $228 Million for Fraud
Date: 2025-08-21 Author: Gabriel Deangelo Categories: BUSINESS
A US federal court has ruled against the founder of the EminiFX platform, ordering him to pay $228 million for organizing a large-scale financial scam. Judge Valerie Caproni ruled that in addition to compensation for the victims, Alexander must also return $15 million illegally transferred to his personal accounts.
The investigation was conducted on the basis of a lawsuit by the US Commodity Futures Trading Commission (CFTC), which stated that from September 2021 to May 2022, EminiFX operated as a cryptocurrency pyramid. Clients were promised a guaranteed income of 5% weekly and a quick doubling of the invested capital. Fictitious reports on income growth were used to attract new investors.
Alexander claimed that the platform was powered by “unique technology” that allowed automated trading on the currency and cryptocurrency markets. However, according to the investigation, the company did not generate any real profit. On the contrary, the founder lost millions of dollars on unsuccessful deals, and withdrew some of the funds for personal use. In particular, about $15 million ended up in his bank accounts, and more than $150,000 went to buy BMW and Mercedes-Benz cars.
In May 2022, the entrepreneur was arrested on charges of commodity and investment fraud. At first, he denied guilt, but in February 2023, he admitted participating in a $250 million scam. The court sentenced him to nine years in prison.
The EminiFX case has become one of the most notable examples of financial fraud in the cryptocurrency sector in recent years. The scheme involved thousands of investors who believed the promises of “passive income”.
Similar cases are recorded in other countries. Thus, recently a federal court in Seattle sentenced the founders of the HashFlare service, Sergey Potapenko and Ivan Turygin. They were found guilty of creating a crypto pyramid through which more than $577 million passed, and sentenced to 16 months in prison.
The stories of EminiFX and HashFlare highlight the risks associated with investing in companies that promise quick and guaranteed income. Experts note that such schemes are built on the trust of investors and sooner or later collapse, leaving thousands of people without their invested funds.
Thus, court decisions against the organizers of cryptocurrency pyramids demonstrate increasing regulatory control and the desire to protect investors from new financial fraud.
