Naive belief in the cryptocurrency market

 Hundreds of millions of dollars are lost as many believe in the promises of 5-10% profit through cryptocurrency trading channels.

ptember 2021, the EminiFX trading system started calling people to participate in the new investment model with a minimum commitment of 5% per week. The system was developed by Eddy Alexandre, a Haitian native living in New York.

By mid-May, the FBI arrested Alexandre on charges of fraud and EminiFX was named as a Ponzi scheme - a scam that takes money from the latter to pay the former - with the proceeds of $59 million.

Many people still hold naive faith in the get-rich-quick promises in the cryptocurrency market. Photo: Reuters
Many people still hold naive faith in the get-rich-quick promises in the cryptocurrency market. Photo: Reuters

However, the above figure is only a small part of the mission. According to a preliminary report recently released by David Castleman - partner of Raines Feldman in New York - $250 million has been raised between September 2021 and May 2022 on the EminiFX platform. About 62,000 accounts have deposited funds into this system.

The investigative report shows that EminiFX users have deposited cash or cryptocurrency into the system. This model also shows signs of multi-level marketing when it rewards people who refer new accounts. Account balance displayed in USD. Users can keep funds in e-wallets or send other exchange wallets. "Weekly Return on Investment (ROI) is announced on Fridays, ranges from 5% to 9.99% and is applicable to all accounts with balances on EminiFX. The ROI is the same for all users" , Washington Post cited reports of authorities.

However, after investigation, Castleman concluded: "I have not found any investment activities that allow the exchange to support the returns promised to users." An investor deposited $ 10,000 in cash on October 15 last year, by May this year, his account balance has increased to $ 77,000. However, this person cannot withdraw the money. Many others said they also never withdraw or exchange money from the system.

Investigators said they did not find any investment activities mentioned by EminiFX such as a proprietary trading system or a Robo advisor account, RA3. Even former employees of the company don't understand where the weekly returns they report to investors come from or how the investment models work.

Only a handful of records show that CEO Alexandre invested $9 million in several funds. However, some of Alexander's personal trades show him losing more than $7 million.

The EminiFX website is currently closed. Users are struggling to find information related to this trading system in the hope of getting their money back. A website named in English and French has just been created for investors to provide information and submit claims.

According to the Washington Post, CEO Eddy Alexandre now denies the accusations of the US Department of Justice. Although not yet in court, the trust of tens of thousands of people in this person has disappeared. "Most investors fear their money is being held by an unscrupulous individual," said investor Markens Nicolas, who defended Alexandre in May.

According to the US Department of Justice, the sophistication of the EminiFX platform lies in its ability to create utopian profit scenarios. They still see the numbers in their accounts are multiplied steadily even though they can't hold the real money paid out by the system.

According to the US Federal Trade Commission, many people still hold the naive belief that they can easily become millionaires if they deposit money in crypto-related companies or platforms. Scammers took advantage of t

he cryptocurrency craze of early 2021 and painted many dream scenarios. Since the start of 2021, Americans have lost more than a billion dollars to crypto scams, a nearly 60-fold increase in losses reported in 2018.

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