A US District Judge has sentenced EminiFX operator Eddy Alexandre for commodities fraud he conducted by making false promises on investment returns.

Alexandre promised to double the returns of the $248 million he solicited from Haitian-American investors in New York. He said the EminiFX crypto and foreign exchange business used a robo-adviser to double investments in five months.

Instead, the platform operator lost $6 million in investor funds and pocketed at least $14,700,000. He also used $155,000 of customer funds to buy a BMW motor vehicle and pay installments on a Mercedes-Benz.

In addition to serving a nine-year sentence, Alexandre must pay a forfeiture of $248 million and $213 million in restitution. The fraudster will also face three years of supervised release following his prison sentence.

The US Commodity Futures Trading Commission also filed a separate civil action against the crypto fraudster.

Alexandre operated the EminiFX platform as a cryptocurrency and foreign exchange business. Despite the charges, several investors supported Alexandre at the trial.

Trading bots are becoming an increasing cause for concern. Earlier this year, FalconX promised a new artificial intelligence trading bot to advise investors based on their overall strategy. The company’s CEO said the product needed OpenAI’s foundation in large-language models to create the product.

In April, Montana’s securities regulator banned an AI trading app YieldTrust.ai for not telling investors how its AI bot could earn 2.2% in daily returns. Customers could deposit funds into a smart contract on the BNB Chain and reap profits from multiple trading strategies.

The project also promised to deliver AI trading bots seems 25% more returns than a human trader.

At the time, Montana’s Securities Commissioner Troy Downing said that criminals are exploiting artificial intelligence hype to mislead investors. But at the same time, an Assistance Professor of Public Health at Texas A&M University noted that AI -related prosecution should focus on what the scammer used the AI for rather than the AI itself.

Learn about reputable AI trading bots here.

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The post Crypto Fraudster Jailed Over $248 Million Investment Scam appeared first on BeInCrypto.

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