Not only do plunging cryptocurrencies have to deal with their recent plunging values, but authorities are uncovering more and more crypto-criminals that add to the industry’s bad name.
U.S. tax authorities say they are tracking 50 individual leads into fraud involving non-fungible tokens and other aspects of the crypto industry. The tax inspectorate also revealed on May 13 that they are looking for evidence of a $1 billion Ponzi scam in the cryptocurrency market.
Beware of Crypto Scams and Scams
The FBI further arrested the CEO of New York cryptocurrency trading platform EminiFX on May 12 on one count of commodity fraud and one count of telegraph fraud involving charges of Ponzi fraud that defrauded investors for approximately $59 million.
Eddie Alexandre, 50, Valley Stream, New York, According to the New York Business JournalHe was arrested on charges punishable by a total of 30 years in prison. FBI complaint From September 2021 to May 2022, Alexandre has solicited investments of over $59 million from hundreds of individual investors through the eminifx.com website, earning 5% to 9.99% weekly returns on their investments, paying off within 5 months. claimed to be doubling. The FBI alleges that Alexandre’s statements about weekly earnings are false and that EminiFX has received no benefit from investors.
Scroll to continue
Alexandre is accused of marketing EminiFX as an investment platform that allows investors to earn passive income through automated investments in cryptocurrency and foreign exchange trading using a “Robo-Advisor Assisted account”. .
According to the complaint, Alexandre received $59 million from people for investments, of which $15 million was misdirected into her personal checking account. He is said to have transferred $9.4 million to an electronic trading platform he opened under his name in December 2019, before founding EminiFX, resulting in a trading loss of approximately $6.27 million. According to the complaint, he also transferred $30,000 of his investor funds to a digital cryptocurrency wallet account registered in his name.
Alexandre is said to have spent $155,000 on the purchase of a BMW car and $13,000 on other car payments, including $10,000 on a Mercedes Benz. Another $15,000 was used for charitable donations and other investor funds were used to rent, provide office space for EminiFX and hold events on behalf of the company.
Significant amounts of investor funds were also used to pay attorneys’ fees, including checks for $100,000 and $20,000, respectively, according to the complaint.
Some investors who can withdraw cash
While many investors are likely to lose money on their EminiFX investments, some investors have successfully withdrawn funds from the platform, according to an FBI complaint. According to bank account activity, EminiFX did not invest most of the investor’s funds and the only way the platform could finance investor withdrawals was to use existing investors’ funds in a classic Ponzi-type way.
An FBI investigation revealed that EminiFX accepted investor deposits in US dollars, accepted investor funds, and also paid in Bitcoin.