EminiFX Review- Scam

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Since assuming control of EminiFX’s business operations on May 11, the Temporary Receiver has not discovered any legal company activity. 

According to a report filed by the Receiver on June 1st, although his investigation is in its earliest stages, the Receiver has not yet located an EminiFX account containing revenue from an underlying business operation (or any legitimate business activity that requires the ongoing use of the business premises or employees once the data is fully secured).   

The total value of seized assets was $62 million as of May 12th.   

The most serious concern for the Temporary Receiver is cryptocurrency held in Eddy Alexandre’s name on an Estonian exchange.   

The receiver has not been able to collect records from Crypto Exchange 4, an Estonia-based organization at which Defendant Alexandre reportedly maintained an account in his own name.

The Receiver has been informed that millions of dollars in cryptocurrency were deposited into users’ EminiFX accounts and disbursed to users’ EminiFX accounts via Alexandre’s account at Crypto Exchange 4, consistent with the CFTC’s allegation that Alexandre operated EminiFX “in the manner of a Ponzi scheme.”

The recipient has not received any information indicating that the Crypto Exchange 4 account was utilized for trading activities that generated revenue. 

The key reason Eddy Alexandre has refused to furnish authorities and the receiver with requested financial documents is that records from “Exchange 4” will likely reveal that EminiFX operated as a Ponzi scheme.   

The good news for EminiFX investors is that Exchange 4 has “voluntary frozen” Alexandre’s account funds.   

In lieu of participating in genuine economic activities and in addition to stealing $14.7 million from investors, Alexandre appears to have been constructing a real estate empire for himself.   

The Receiver has identified 46 residential real estate properties in Suffolk County where EminiFX is under contract to purchase foreclosed properties, having paid deposits of over $2 million.   

Additionally, the receiver has uncovered two properties in Nassau County. The first, a contract to be purchased by EminiFX for more than $1.5 million, appears, after an initial investigation by the Receiver, to be worth less than the additional cost of marketing and resale, even if the contract were to close; therefore, the Receiver has accepted the seller’s offer to rescind the contract, return the deposit, and enter into mutual releases.

The second, in a contract to be acquired by Defendant Alexandre for more than $5 million, appears to contain a 10% deposit funded with client cash, and the receiver has notified the escrow agent, the bank holding the deposit, and the SRO of this fact. 

The receiver’s staff has determined, based on forensic analysis of collected evidence, that there was criminal activity. 

There are at least 62,000 active EminiFX user accounts, of which between 25,000 and 50,000 are actively “trading” on the EminiFX platform, according to the recipient.   

“Trading” refers to participant accounts in EminiFX’s Ponzi scheme.   

He reports that since taking over EminiFX, the Receiver has received over 8000 investor emails.   

The $62 million seized appears promising for investors, despite the protracted recovery period. To a certain extent, however, this depends on how much is stored in Exchange 4, whether that will be retrieved, and whether Alexandre had more unidentified cryptocurrency accounts.   

Regarding the long-term verification of investor claims, the Receiver says, “It appears that the user data just obtained from EminiFX contains extensive contact information that the Receiver and his staff can use to establish a notice and claims process.

“The invocation of the Fifth Amendment by Defendant Alexandre and other parties may severely complicate the receiver’s efforts to acquire data and information.   

When the time comes, the recovered items should help streamline the victim’s claim process.   

It is also likely to furnish the recipient with ammunition for a lawsuit against EminiFX’s top net-winners.    The Receiver has begun the process of transferring the EminiFX accounts to the Receivership estate, which will result in over $53 million in cash.

The receiver anticipates that the vast majority of this cash will eventually be available for distribution to investors. Together with his skilled counsel, the receiver intends to investigate the underlying fraudulent activity by utilizing recovered emails and other correspondence, interviews with witnesses, and investigations of third-party documents.

The Receiver wants to use the outcome of this investigation to prosecute all cost-effective claims of the receivership and deny claims made by guilty parties. The Receiver will keep the court apprised of his inquiry and plans regarding any legal claims from third parties.   

The preliminary injunction hearing for EminiFX remains scheduled for June 7th.   

However, conversations between the CFTC and Alexandre imply that a preliminary injunction by consent may be possible.   

That is, the granting of an agreed-upon preliminary injunction without Alexandre’s needing to be railroaded in court.   

The court has ordered the parties to file the requested preliminary injunction by June 3 if an agreement is reached. 

I have scheduled our next docket review for June 4 and will provide an update then.

Since assuming control of EminiFX’s business operations on May 11, the Temporary Receiver has not discovered any legal company activity.  According to a report filed by the Receiver on June 1st, although his investigation is in its earliest stages, the Receiver has not yet located an EminiFX account containing revenue from an underlying business operation…

Since assuming control of EminiFX’s business operations on May 11, the Temporary Receiver has not discovered any legal company activity.  According to a report filed by the Receiver on June 1st, although his investigation is in its earliest stages, the Receiver has not yet located an EminiFX account containing revenue from an underlying business operation…

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