Author Avatar

editor

0

Share post:

The Temporary Receiver hasn’t uncovered any legal underlying company activities since taking over EminiFX’s business operations on May 11th.

According to a report submitted on June 1st by the Receiver, even though his inquiry is still in its early stages, the Receiver has not yet located an EminiFX account that holds revenue from an underlying business operation (or any legitimate business activity that requires the ongoing use of the business premises or employees once the data is fully secured).

As of May 12th, the total value of the assets seized was $62 million.

The Temporary Receiver’s most immediate concern is crypto, which is stored in EminiFX owner Eddy Alexandre’s name on an Estonian exchange.

The Receiver has yet to collect data from Crypto Exchange 4, a firm based in Estonia, where Defendant Alexandre held an account in his name, according to the Receiver.

The Receiver has been informed that millions of dollars in bitcoin were put in users’ EminiFX accounts and dispersed to users’ EminiFX accounts through Alexandre’s account at Crypto Exchange 4, in line with the CFTC’s claim that Alexandre was running EminiFX “like a Ponzi scheme.”

The Receiver has not been given any information indicating that the Crypto Exchange 4 account was used for a trading activity that resulted in revenue.

Data from “Exchange 4” will very certainly reveal that EminiFX was a Ponzi scam, which is one of the main reasons Eddy Alexandre has refused to provide over-required financial records to authorities and the Receiver.

Exchange 4 has “voluntarily frozen” cash stored in Alexandre’s account, which is good news for EminiFX investors.

Alexandre appears to have been constructing a real-estate empire instead of participating in legal commercial activities and, in addition to helping himself to $14.7 million in investor cash.

The Receiver has identified 46 residential real estate assets in Suffolk County that EminiFX has agreed to buy out of foreclosure for a total of nearly $2 million in deposits.

Two properties in Nassau County have also been located by the Receiver.

The first, which EminiFX had agreed to buy for over $1.5 million, appears to be worth less than the additional cost of marketing and resale even if the contract were to close after an initial investigation by the Receiver, and as a result, the Receiver has accepted the seller’s offer to rescind the contract, return the deposit, and enter into mutual releases.

The second, which Defendant Alexandre is under contract to buy for more than $5 million, looks to have its 10% deposit financed with customer cash, and the Receiver has informed the escrow agent and the bank holding the deposit of this knowledge, as well as the SRO.

The Receiver’s staff has determined that there are at least 62,000 active EminiFX user accounts, of which the Receiver has been informed that between 25,000 and 50,000 are active “trading” on the EminiFX site, based on forensic examination of confiscated material.

Investor accounts engaged in EminiFX’s Ponzi scam are referred to as “trading.”

The Receiver claims he has received over 8000 emails from investors since taking over EminiFX.

While recovery is still a long way off, the $62 million confiscated appears to be a great investment opportunity. To some part, though, this depends on how much money is held up in Echange 4, whether it will be recovered, and whether Alexandre has any other crypto accounts that have yet to be discovered.

The Receiver notes that the user data recently obtained from EminiFX looks to have extensive contact information, which the Receiver and his staff will be able to utilize to develop a notification and claims procedure.

However, probably, Defendant Alexandre’s and other parties’ assertions of the Fifth Amendment may considerably obstruct the Receiver’s efforts to acquire data and information.

When the time comes, what has been discovered should help to streamline the victim claim procedure.

It will almost certainly provide the Receiver ammunition to pursue clawback lawsuits against EminiFX’s top net-winners.

The Receiver has started the process of transferring the EminiFX accounts to the Receivership estate, which will result in more than $53 million in cash, the great majority of which the Receiver anticipates to be available for distribution to investors in the future.

The Receiver plans to examine the underlying fraudulent behavior with the help of his competent lawyers, utilizing the email and other communications discovered, interviews with witnesses, and a study of documents received from third parties.

The Receiver intends to use the findings of the inquiry to pursue any cost-effective receivership claims and to deny any claims filed by responsible parties.

The Receiver shall keep the Court informed of his findings and plans regarding any third-party lawsuit claims.

The preliminary injunction hearing for EminiFX is still planned for June 7th.

However, the CFTC and Alexandre have had negotiations, suggesting that a consensual preliminary injunction may be achieved.

That is the issuance of a mutually agreed preliminary injunction without Alexandre having to go to court.

The court has ordered the parties to file the requested preliminary injunction by June 3rd if they reach an agreement.

Our next docket check is planned for June 4th, and I’ll report back then.

Mtcoin Review Part 2 – Is a Fraud
Rodan + Fields Review - Is a Fraud

Leave a Comment

Your email address will not be published. Required fields are marked *