FBI Arrests NY Crypto Platform CEO for Alleged Fraud

Ponzi schemes continue to infest the cryptocurrency sector, adding to the industry's growing challenges.

Source Article FBI Arrests NY Crypto Platform CEO for Alleged Fraud

As you read through the article below, be mindful and conscious of the "time-frames", "timelines" that Michael Thomas Glaspie aka Mike G had given within his updates that he continued to present. December 2019, September 2021 are significant dates. You can also reference the timelines in DD's (Disclosed Deception's) Notes here. Notice the amounts of money and the $30,000 does stand out (Mikey's $30K Fine for Selling Unregistered Securities) - Not forgetting Glaspie's $6 Million Dollar Tax Evasion Fine or Neil Chandran's $3 Million Dollar Fine.

Notations: (Below) - Just some simple comparisons... follow the money trail.

Look at the amounts collected. Look at the amounts $59 Million, just about the same amount that is speculated that Michael Thomas Glaspie and Garry John Davidson had collected over the course of this charade. Check the amounts of the misdirected funds below, also very close to the money that was thought to be moved across Glaspie's accounts including his Crypto Wallets.

Also, keep in mind Glaspies earlier Fines and Lawyer fees.... $30,000.00 Fine - plus the attorney fees, remember also the charge-back fees from the merchant Glaspie once used. All of this is most likely Not Including potential funds that were seized and held by the banks that Glaspie had moved funds to. The bank locks up funds when there appears to be a security issue or suspicious activity, like moving large amount of cash without alerting the bank to this prior to moving the cash.

How ironic is it that Glaspie's activities are so very close in alignment with the actions reported in this article...?

Article continued:

Slumping cryptocurrencies have not only had to deal with plummeting values lately, but authorities are uncovering more and more crypto crimes that are adding to the industry's bad name.

U.S. tax authorities have said they were following 50 separate leads into scams involving nonfungible tokens and other aspects of the crypto industry. Tax investigators also said on May 13 that they were pursuing evidence of a $1 billion Ponzi scheme in the crypto market.

The FBI additionally on May 12 arrested the CEO of New York crypto trading platform EminiFX on one count of commodities fraud and one count of wire fraud related to an alleged Ponzi scheme that defrauded investors out of about $59 million.

Eddy Alexandre, 50, of Valley Stream, N.Y., according to the New York Business Journal, was arrested on charges which can carry a combined maximum sentence of 30 years in prison. The FBI complaint alleged that Alexandre from September 2021 to May 2022 solicited over $59 million in investments from hundreds of individual investors through the eminifx.com website, guaranteeing they would double their money within five months by earning 5% to 9.99% weekly returns on their investment. The FBI complaint claimed that Alexandre's representations about weekly profits were false and EminiFX had not earned its investors any profit.

Alexandre allegedly marketed EminiFX as an investment platform through which investors would earn passive income through automated investments in cryptocurrency and foreign exchange trading by using a "Robo-Advisor Assisted account," which he described as new technology that was a trade secret, the complaint said.

The complaint said that Alexandre received $59 million from people to invest and misdirected $15 million of the funds to his personal checking account. He allegedly transferred $9.04 million to an electronic trading platform that he had opened in his name in December 2019, which was before he established EminiFX, and sustained about $6.27 million in trading losses. He also transferred $30,000 of investor funds to a digital cryptocurrency wallet account registered in his name, according to the complaint.

Alexandre allegedly used $155,000 to purchase a BMW car, and spent $13,000 on other car payments, including $10,000 for a Mercedes Benz. Another $15,000 was spent on a charitable donation and spent other investor funds on rent, to furnish office space for EminiFX and to hold events on behalf of the company.

A substantial amount of investor funds were also used to pay attorney fees, including checks for $100,000 and $20,000, each with the word "retainer" written in the subject line, the complaint said.

Some Investors Able to Cash Out

While many investors are likely to lose money on their EminiFX investments, the FBI complaint said certain investors successfully withdrew funds from the platform. Bank account activity shows that EminiFX failed to invest the majority of investor funds, and it appears that the only way the platform could fund investor withdrawals was to use funds of existing investors in a classic Ponzi-type scheme.

The FBI investigation discovered that EminiFX accepted investor deposits in U.S. dollars and accepted investor funds and made payments in bitcoin as well, the complaint said.

By the way Mikey... when you read this, you can insert your full name into the name spaces, just to catch a glimpse of how it's all going to feel when they finally nab you.