A company called EminiFX claimed it had developed a proprietary trading system that would invest people’s money in cryptocurrency and the foreign exchange markets, also known as forex.
When the Justice Department and Commodity Futures Trading Commission filed complaints against a suspected Ponzi scheme by the company, they believed the swindle amounted to $59 million.
But that turned out to be a gross underestimate, according to a preliminary report filed by David Castleman, a partner at Raines Feldman in New York, who has been appointed receiver for EminiFX.
The Justice Department and Commodity Futures Trading Commission alleged that EminiFX, owned by Eddy Alexandre of New York, was a Ponzi-like scheme that promised participants guaranteed returns of at least 5 percent every single week.
Castleman said his investigation found that $250 million was collected from investors from September 2021 until May 2022 and that there were 62,000 EminiFX user accounts. Emil Bove, an attorney for Alexandre, did…
