A federal judge in New York ordered Eddy Alexandre, founder of EminiFX, to pay over $228 million due to a Ponzi scheme defrauding thousands of investors. The ruling includes $15 million in disgorgement. Alexandre pleaded guilty in a parallel criminal case over a year ago.

EminiFX raised $262 million with fake robo-trading claims, attracting 25,000 investors in eight months. Court filings reveal the company never used the promised automated trading technology, sustaining net losses of $49 million. Alexandre diverted $15 million for personal expenses while paying out withdrawals using new participants’ funds.

Alexandre, sentenced to nine years in prison for commodities fraud, faces a $213 million restitution order. The civil case adds a $228 million restitution and $15 million disgorgement mandate. The court-appointed receiver has begun distributing recovered funds to victims following January’s approval of a distribution plan.

Crypto losses from hacks, scams, and exploits hit $2.47 billion in the first half of 2025, with $800 million lost in Q2 across 144 incidents. This marks a 52% drop in value and 59 fewer hacks compared to Q1. Despite the decrease in Q2, losses are up almost 3% from 2024.

Read more at Cointelegraph: Court Orders EminiFX Founder to Repay $228M