15 May 2022 14:06, UTC
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U.S. law enforcement authorities have arrested Eddie Alexander, 50, the head of the cryptocurrency brokerage company EminiFx. The Federal Bureau of Investigation (FBI) charged him with fraud to the tune of $59 million. The head of the New York-based organization faces up to 30 years in prison.
The text of the criminal complaint documents filed in Manhattan court stated that Project EminiFX, represented by the arrestee, misled several hundred people over a period of eight months, from September 2021 to May 2022, in order to extort money.
Public Prosecutor Damian Williams, a representative of the state prosecution, stated:
“The fraud consisted of providing users of the EminiFx project with false guarantees of high returns from passive financial investments. The misled investors gave the defendant a total of $59 million in funds.
The concept of Eddie Alexander’s brokerage company was, according to experts, another financial pyramid scheme. FBI Deputy Chief Michael Driscoll commented that:
“The criminal group ‘guaranteed’ weekly profits of 5% of passively invested amounts ranging from $99,000 to $250,000 in the company’s fund.”
The founders succeeded in gaining investment success through assurances of “efficient technology,” the details of which were undisclosed as a “trade secret.” In reality, this technology did not exist, which became the basis for a criminal prosecution against the head of the company.
The state prosecution proved that most of the monetary assets received by the fraudsters were transferred to the personal accounts of the founders and were used to purchase luxury goods.
Earlier, Crypto.ru editorial staff reported that Google filed a lawsuit in New York against two Russian citizens, accusing them of stealing user data, for further enrichment with the help of mining.
#cryptofinancing #pyramid #arrested #York