EminiFX, Inc. Receivership

EminiFX, Inc. Receivership

Case Number: 22-03822 (VEC)

Southern District of New York
Digital Asset Management

This page includes details regarding the Receiver’s court-approved Digital Asset Management Protocol (the “Protocol”). In the Protocol, the Receiver requested and received authority to manage and sell the substantial amount of digital assets, also known as cryptocurrency (including Bitcoin), that have been turned over to the receivership estate. The Receiver will continue to maintain this page for updates concerning the Protocol and the associated sales of Bitcoin and other digital assets.

As of February 3, 2023, the receivership estate's position in Bitcoin is as follows:

Description Amount Net Sale Proceeds Average Net Price
Total BTC turned over 3680.138    
Custodial Fees -1.621    
Sale 1/9/2023-1/20/2023 -500 $10,062,697.85 $20,125/BTC
Sale 1/24/2023-2/03/2023 -500 $11,550,563.53 $23,101/BTC
Remaining BTC 2678.517    
Summary of Sales to Date
  1000 BTC $21,613,261.38 $21,613/BTC

The Receiver has sold the liquid non-Bitcoin digital assets as follows, with the proceeds being placed in an interest-bearing account.

Digital Asset Symbol Amount Sold Net Proceeds
Litecoin LTC 44.9932 $3,305.91
Orchid Token OXT 17,608 $1,196.11
Decentraland MANA 6,234.10 $1,983.50
Dogecoin DOGE 299,756.50 $21,528.29
Shiba Inu SHIB 1,338,198,877 $11,319.55
Gala GALA 470 $8.39
Ethereum ETH 1.8455138 $2,295.19
Total Proceeds  $41,636.94

February 3, 2023

The Receiver sold the second batch of 500 BTC pursuant to the Protocol, for a total of $11,550,563.53 after commissions of $28,948.78, for an average net price of $23,101 per coin. The price generally remained stable throughout the sale period. The sale proceeds have been placed in an interest-bearing account. The sale of the next 500 BTC will begin on February 7 and is expected to be completed on Friday, February 17, at the end of a 10-day sale period.

January 23, 2023

The Receiver sold the first batch of 500 BTC pursuant to the Protocol, for a total of $10,062,697.85 after $35,343.15 in commission, for an average net price of $20,125 per coin. Because the Bitcoin was sold under the TWAP method, the estate was able to take advantage of the recent price increase in Bitcoin. The sale proceeds have been placed in an interest-bearing account. The sale of the next 500 BTC will begin tomorrow and is expected to be completed on Friday, February 3, at the end of a 10-day sale period.

January 10, 2023

The Receiver sold the Liquid Non-Bitcoin Assets pursuant to the Protocol. Those funds have been placed in an interest-bearing account. The value of the remaining illiquid digital assets in the receivership account is less than $0.12. The Receiver also moved BTC 500 from the Custodial Account to the Prime Brokerage Account, and he instructed the broker to sell that BTC 500 over a 10-day period, as set forth in the Protocol.

January 4, 2023

The Court approved the Receiver’s Proposed Digital Asset Management Protocol.  The Court expressed sympathy, shared by the Receiver, “to the concerns of EminiFx investors that their investments have, on net, lost value as the price of Bitcoin has fallen,” but explained that “this loss highlights the riskiness of Bitcoin as an investment vehicle and demonstrates the need to move these highly volatile digital assets into dollar-denominated, low-risk assets.”  You can download a copy of the full opinion and order HERE.

December 23, 2022

The Receiver filed a reply to the investors’ responses to the Proposed Protocol.  You can download a copy HERE.

December 22, 2022

The CFTC filed a reply to the investors’ responses to the Proposed Protocol.  You can download a copy HERE.

December 21, 2022

The Receiver filed a compendium of the investors’ responses to the Proposed Protocol.  The Receiver appreciates all investors who took the time to send in comments.  You can download a copy HERE.

December 9, 2022

The Receiver filed a proposed Digital Asset Management Protocol (the “Proposed Protocol”) with the Court.  In this filing, the Receiver proposes a protocol for how to sell those digital assets in a responsible and carefully managed manner, after consulting with his financial advisor and the trading desk of the estate’s Prime Broker. You can download a copy HERE.

October 20 to November 20, 2022

The Receiver – with the consent and cooperation of Mr. Alexandre – took possession of the vast majority of EminiFX’s digital assets (also known as cryptocurrency), valued at over $60 million at the time of transfer.  The status report discussing those turnovers can be found HERE.

Investor Feedback is Closed.

EMINIFX INVESTORS ARE FURTHER INSTRUCTED THAT THEY ARE NOT TO SEND ANY SUCH FEEDBACK TO THE COURT DIRECTLY, OR COPY THE COURT ON ANY RESPONSE, UNLESS THEY HAVE MADE A MOTION TO INTERVENE, AND SUCH MOTION HAS BEEN GRANTED.

The Receiver appreciates your patience during this process, and reminds EminiFX investors that general inquiries may continue to be sent to EminiFXInquiries@Stretto.com.  Please do not submit any inquiries directly to the Court unless you have made a motion to intervene, and that motion has been granted.  Please also continue to check the website at www.eminifxreceivership.com, where all updates and Court filings will continue to be posted.