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The Valley Stream, New York resident – Eddie Alexander – received a nine-year prison sentence for his involvement in commodity fraud. He was found guilty of defrauding over 25,000 investors of $248 million through his cryptocurrency trading platform called EminiFX.
Investigation revealed that Alexandre used some of the money to buy luxury items like expensive cars for himself.
‘Shameless’ fraud
US Department of Justice (DOJ) announced Its official website details Alexandre’s punishment, his crime.
He led the dubious crypto investment platform EminiFX between September 2021 and May 2022 to offer clients “guaranteed” high investment returns through specialized technology. This feature, referred to as his “trade secret”, promised customers that they would double their money within five months.
To make it appear legit, each week EminiFX’s website was falsely representing to users some return on their investment. In reality, however, Alexandre invested only a small portion of the money entrusted to him and kept the rest for himself. He even lost millions of dollars on money distributed in crypto: a fact he never disclosed to the victims.
The DOJ claimed that he falsely transferred at least $14,700,000 to his personal bank account and bought himself a BMW car for $155,000.
The United States Attorney for the Southern District of New York – Damian Williams – said that Alexandre’s fraud was “brazen” and involved “fabricating weekly investment returns of at least 5% out of the air”.
“Most seriously, Alexandre took advantage of his position of trust within his church and the Haitian community to recruit many of his investors, even enlisting church members to help recruit MiniFX investors. As today’s sentence demonstrates, crypto executives who lied and defrauded their clients will be held accountable for their crimes,” he said.
In addition to nine years in prison, Alexandre was sentenced to three years of supervised release and ordered to forfeit $248 million and pay restitution of $213 million.
The father-son duo will face up to 20 years in prison
There have been many examples of wrongdoers who have defrauded crypto investors over the years only to steal their money and flaunt a lavish lifestyle.
Such is the case with Brandon Austin and his father – Eugene “Hugh” Austin – who were arrested earlier this year on charges that they “poached millions of both sophisticated and novice cryptocurrency investors alike.”
Similar to Alexandre, the family encouraged people to buy cryptocurrencies through them by promising great returns. Instead, he embezzled every cent and employed the money for his own benefit. According to authorities, with the $10 million stolen from investors, they stayed in luxury hotels, bought luxury cars and went to expensive restaurants.
Alleged offenders can now face up to 20 years in prison for charges such as money laundering and wire fraud. Brandon has already pleaded guilty and agreed to forfeit $3.4 million and pay $2 million in restitution. Magistrates are expected to announce his sentence on 6 September.
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The Valley Stream, New York resident – Eddie Alexander – received a nine-year prison sentence for his involvement in commodity fraud. He was found guilty of defrauding over 25,000 investors of $248 million through his cryptocurrency trading platform called EminiFX.
Investigation revealed that Alexandre used some of the money to buy luxury items like expensive cars for himself.
‘Shameless’ fraud
US Department of Justice (DOJ) announced Its official website details Alexandre’s punishment, his crime.
He led the dubious crypto investment platform EminiFX between September 2021 and May 2022 to offer clients “guaranteed” high investment returns through specialized technology. This feature, referred to as his “trade secret”, promised customers that they would double their money within five months.
To make it appear legit, each week EminiFX’s website was falsely representing to users some return on their investment. In reality, however, Alexandre invested only a small portion of the money entrusted to him and kept the rest for himself. He even lost millions of dollars on money distributed in crypto: a fact he never disclosed to the victims.
The DOJ claimed that he falsely transferred at least $14,700,000 to his personal bank account and bought himself a BMW car for $155,000.
The United States Attorney for the Southern District of New York – Damian Williams – said that Alexandre’s fraud was “brazen” and involved “fabricating weekly investment returns of at least 5% out of the air”.
“Most seriously, Alexandre took advantage of his position of trust within his church and the Haitian community to recruit many of his investors, even enlisting church members to help recruit MiniFX investors. As today’s sentence demonstrates, crypto executives who lied and defrauded their clients will be held accountable for their crimes,” he said.
In addition to nine years in prison, Alexandre was sentenced to three years of supervised release and ordered to forfeit $248 million and pay restitution of $213 million.
The father-son duo will face up to 20 years in prison
There have been many examples of wrongdoers who have defrauded crypto investors over the years only to steal their money and flaunt a lavish lifestyle.
Such is the case with Brandon Austin and his father – Eugene “Hugh” Austin – who were arrested earlier this year on charges that they “poached millions of both sophisticated and novice cryptocurrency investors alike.”
Similar to Alexandre, the family encouraged people to buy cryptocurrencies through them by promising great returns. Instead, he embezzled every cent and employed the money for his own benefit. According to authorities, with the $10 million stolen from investors, they stayed in luxury hotels, bought luxury cars and went to expensive restaurants.
Alleged offenders can now face up to 20 years in prison for charges such as money laundering and wire fraud. Brandon has already pleaded guilty and agreed to forfeit $3.4 million and pay $2 million in restitution. Magistrates are expected to announce his sentence on 6 September.
Binance Free $100 (Exclusive): Use this link to register and get $100 free and 10% off fees on Binance Futures for the first month. (terms).
PrimeXBT SPECIAL OFFER: Use this link to register and enter the code CRYPTOPOTATO50 to receive up to $7,000 on your deposit.
