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The court has given permission for the EminiFX Receiver to sell off 3680 BTC.

In November, CoinPayments got back 3,588 BTC, which was most of the bitcoin.

On December 9, the Receiver put in an application to sell the bitcoin.

Since October, the estate has gotten more than 3,680 Bitcoin (BTC) worth more than $60 million and other digital assets worth about $50,000.

The Receiver thinks that it is best for the estate to sell its cryptocurrency in a controlled way.

Under the proposed “managed process,” Receive would sell 500 BTC every two weeks. This would take place over a period of four months.

minimizing the effect of the market on selling these assets, reducing the effect of Bitcoin’s price volatility on the estate, and reducing the risk of holding cryptocurrency for a long time.

Investors in EminiFX had the chance to give feedback as part of the approval process.

The EminiFX Receivership got “over a thousand emails from 930 different email addresses” between December 9 and December 21.

Most of the emails (744 of them) were either form templates or variations on them. The form was given to investors by EminiFX’s top net-winners through a Telegram group.

As you might expect, the form template had the usual complaints about the Receivership and refusals to admit that EminiFX was a Ponzi scheme.

The scammers who run the EminiFX Telegram group have a reason to stop the EminiFX regulatory process from happening. Sadly, they keep giving investors false information.

Investors also complained that the price of bitcoin would drop from $40,000 to $17,000 by December 2022.

Bitcoin is losing value. Not the right time to sell. We will lose a lot of money. [sic]

One common idea was to keep the bitcoins and not sell them, with the goal of making distribution payments in bitcoins in the long run.

I’d like to ask the Receiver and the Federal Government to let investors, or those who want to, get their money back in the form of bitcoin digital currency, as it was when Eminifx got it.

The CFTC filed a response to the Receiver’s application on December 22. This was to support the application.

The Commission’s investigation found that EminiFX customers and potential customers were told that they would get guaranteed returns of at least 5% “every single week” on their deposits before they made them.

So, customers gave money to EminiFX because they were told it was a safe investment and that their money wouldn’t be at risk.

The Commission didn’t find any proof that customers were told their money would be put into digital assets that were risky and could lose most or all of their value.

Customers put money into EminiFX because they were told their money would be safe. Because of this, the Commission backs putting estate assets into a safe investment vehicle until they can be given out.

The CFTC also talked about complaints and misunderstandings that EminiFX investors often have.

Customers who asked the Receiver to keep the digital assets of the estate made up most of the comments the Receiver got, but they only made up a small portion of the 62,000 EminiFX customers.

And in any case, those who say the Receiver should keep the digital assets and then “sell high” are asking the impossible. The Receiver has no way of knowing if the digital assets of the estate will go up or down in value in the future.

The Commission also wants to answer criticisms and what seem to be misunderstandings in the Form Letter and other customer comments.

First, the Form Letter says that the Receiver “decided and didn’t decide” about investments and lost “over $50 million of our crypto currency’s value.”

With all due respect, this is not true. It was the Defendants (EminiFX), not the Receiver, who decided to buy up bitcoin in the winter and spring of 2022, when bitcoin was at its all-time high of over $40,000, and put it in a foreign digital asset exchange where the Receiver couldn’t get it quickly.

By the time the Receiver was named on May 12, 2022, bitcoin had already dropped below $29,000, which was more than a 38% drop from its all-time high.

The Receiver worked hard to get access to the digital assets, and on November 20, 2022, he or she finally did.

The Receiver is not to blame for the drop in the price of bitcoin before he was hired or while he worked hard to get access to the digital assets.

Second, the Form Letter and other comments make it sound like the Receiver is to blame for Mr. Alexandre not being able to trade and control EminiFX funds anymore.

Again, this is not the case. The Commission asked the Court for a statutory restraining order naming the Receiver and telling him to “take full control of [EminiFX] by removing Defendant Eddy Alexandre.” The Court agreed and gave the Commission what it asked for.

After that, the defendants, including Mr. Alexandre, agreed to a preliminary injunction that, among other things, stopped Mr. Alexandre from running any pooled investment vehicle like EminiFX or trading commodity interests.

So, Mr. Alexandre lost control of EminiFX not because of the Receiver’s whims, but because of the Court’s orders, which were made at the Commission’s request and with Mr. Alexandre’s agreement (in the case of the preliminary injunction).

The Receiver filed a response to investor concerns on December 22. He said, “At this point, the losses due to the drop in the price of Bitcoin are a sunk cost.”

In a court order from January 4, the EminiFX Receiver’s request was approved.

The Court agrees with the CFTC and the Receiver that the best way to handle Bitcoin and other cryptocurrencies is to sell them. This is because Bitcoin and other cryptocurrencies are very volatile, and the Estate’s assets will need to be turned into cash so that investors can get their money.

Even though the Court understands that EminiFx investors are upset that their investments have lost value overall because the price of Bitcoin has gone down, this loss shows how risky Bitcoin is as an investment and how important it is to move these highly volatile digital assets into low-risk dollar-denominated assets.

Nobody, not the Court, not the Receiver, and not the investors, knows what will happen to the value of Bitcoin or the other cryptocurrencies between now and when the investors get their money from the Estate.

So, the Receiver’s motion to accept the proposed protocol for managing digital assets is GRANTED.

EminiFX was a forex-themed Ponzi scheme, which we talked about here on BehindMLM in March 2022.

Eddie Alexandre, who started EminiFX, is still set to go to trial on March 27, 2023, for a separate crime.

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