New York resident charged in $59 million cryptocurrency fraud

The Federal Bureau of Investigation (FBI) has charged 50-year-old New York resident Eddie Alexander with cryptocurrency fraud. The FBI says in court documents.

According to the FBI, Alexander founded and operated the digital-asset trading platform EminiFX. He allegedly attracted “hundreds of individual investors” and promised to double their investments within five months, as well as a 5% weekly profit.

Authorities allege that the defendant did not invest much of the funds entrusted to him. He moved money to personal accounts and spent about $170,000 on the purchase of luxury cars, office rent, marketing, and staff hires, the FBI said.

Alexander misled clients about their investments and claimed that the funds were managed by “experienced traders” at EminiFX. However, what exactly they were invested in, the founder did not specify.

The FBI estimated the loss from Alexander’s actions at $59 million. On two counts, he faces 10 and 20 years’ imprisonment.

Earlier in May, the CEO of Mining Capital Coin, Luis Capuchi Jr., was named as a defendant in a case of fraud involving $62 million.

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