FBI Arrests CEO of New York Crypto Exchange on Suspicion of Fraud

The Federal Bureau of Investigation (FBI) arrested the CEO of New York-based cryptocurrency trading platform EminiFX on May 12 on charges of wire fraud that swindled investors out of about $59 million.

The FBI suggests the scam was about using the classic Ponzi scheme.

Investigators arrested fifty-year-old Eddie Alexander from Valley Stream, New York. Alexander could face up to 30 years in prison for his crimes, according to the New York Business Journal.

From September 2021 to May 2022, Alexander raised over $59 million in investments from hundreds of individual investors through the eminifx.com website, according to the FBI. He guaranteed that investors would double their money within five months, earning between 5% and 9.99% per week. But Alexander’s claims of weekly profits were false, and EminiFX did not bring any profit to its investors.

Eddie Alexander, according to the investigation, spent the money of his investors on various events, furniture for the company’s offices, the purchase of two cars and their maintenance, and transferred part of the money to a personal account. In addition, a significant amount of investor funds were used to pay lawyers.

The FBI noted that some investors were able to withdraw their funds from the platform, but others are likely to lose their money.

According to the analytical company Chainalysis, attackers targeting the cryptocurrency industry stole $14 billion in 2021.

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