EminiFX, Inc. Receivership

EminiFX, Inc. Receivership

Case Number: 22-03822 (VEC)

Southern District of New York
User Portal Frequently Asked Questions (see below for General FAQs)
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What am I being asked to do?

We are asking you to verify each transaction related to your EminiFX User Account found under the Transaction Log. Make sure to review each transaction.

The only transactions we are asking you to review are deposits of money into your EminiFX User Account (Contributions), and withdrawals from your EminiFX User Account (Withdrawals).

The transactions listed in the Transaction Log are based on the Receiver’s review of documents available to him.

What do I do if I think the transaction is correct?

If you agree with the information provided for each listed transaction, click the “verify” button associated with that transaction.

What do I do if I disagree with the amount listed for the transaction?

If you do not agree with the amount listed for the transaction, you should mark the transaction as “disputed”, in which case, a pop-up screen will enable you to enter what you believe to be the correct amount (in USD or BTC) of the transaction.  You are required to submit supporting documentation that would allow the Receiver to verify the accuracy of the information provided.

What if the amount listed in the Transaction Log is slightly different than that is reflected in my records?

It is possible that the amount of each transaction, as reflected in the Transaction Log, may differ slightly from the amount that may be reflected in your records.  This is because you may have had to pay fees and other transactions costs (e.g., transaction fees for CoinPayments).  The amounts listed in each transaction reflect the amount contributed to the EminiFX System, net of fees and transaction costs.  The same may be true of fees you may have had to pay upon making a withdrawal from the EminiFX System.

How do I add a missing transaction?

You can add any missing Contributions or Withdrawals that are not listed on the Transaction Log by clicking “add transaction” and providing the date, transaction source, transaction type and amount of the transaction (in USD or BTC).  You are required to submit supporting documentation that would allow the Receiver to verify the accuracy of the information provided.

What if a deposit includes money from another EminiFX user? Or a withdrawal includes money to another EminiFX user?

If you need to attribute a transaction listed on your Transaction Log to another EminiFX User, in whole or in part, you can indicate that by provide such User’s name and email, and the amount of the transaction (in USD or BTC) that should be attributed to the other User.

What if I don’t recognize a transaction?

If you do not recognize a transaction, you can simply mark the transaction as unrecognized.

What do I do once I am done responding to each transaction?

Once all transactions are either verified or updated, including any additional transactions added, select the “Submit” button under the Transaction Log to submit your transactions to the Receiver.

I don’t see any ROI, Bonuses, or Internal EminiFX Transfers. Where are those?

Transaction records will not reflect accrued return on investment and bonuses that may have been displayed on the EminiFX platform.  Any purported return on investment or bonuses are not included to the Transaction Log.  DO NOT ADD ROI OR BONUSES, OR INTERNAL EMINIFX TRANSFERS.  The Receiver is only looking to validate transactions of funds into the EminiFX system, or out of the EminiFX system, in this process.

Why are there no transactions listed on the Transaction Log?

The Receiver has undertaken a review of documents available to him and has sought to attribute all deposits of money into the EminiFX System (Contributions) and all withdrawals from the EminiFX System (Withdrawals) to a particular EminiFX User Account.  The Receiver has not yet found any Contributions or Withdrawals related to your EminiFX User Account. This does not mean that you do not have any Contributions or Withdrawals.  The Portal allows you to add any transactions you think should be attributed to your EminiFX User Account to the Transaction Log.

What if I did not make any Contributions or Withdrawals?

If you have not made any Contributions or Withdrawals into or out of the EminiFX System, you do not need to do anything and no action is required by you.

Where are the full list of court-approved procedures available?

The procedures for the verification of User Contributions and Withdrawals contain a complete description of the process for reviewing such transactions, which can be found at the Procedures Order (docket no. 228).

General Frequently Asked Questions
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What is the status of EminiFX?

On June 15, 2022, the United States District Court for the Southern District of New York entered a Consent Order for Preliminary Injunction and appointed David Castleman as Receiver over EminiFX, Inc. (“EminiFX”) assets and the assets of Eddy Alexandre that are traceable to EminiFX customers. The Consent Order followed the Receiver’s initial appointment as Temporary Receiver under the Statutory Restraining Order, which was in effect from May 11, 2022 to June 15, 2022.

As a result, EminiFX is no longer in operation.  No withdrawals are permitted, and all EminiFX users who contributed or withdrew money can validate their transactions through the Receiver’s court-approved transaction verification process, using the EminiFX User Portal HERE.

Additional information about the Receivership, including a copy of the Consent Order appointing the Receiver, can be found at this website.

What is a Receivership?

Receivership is a process in which a legally appointed receiver acts as custodian of a company's assets or business operations. The Receivership process is designed to allow a court‐appointed third party to act as a custodian for assets and maximize asset values for investors, creditors, employees and parties who have an interest in the estate.  

The Receiver’s duties and responsibilities require him to identify, account for, preserve and protect Receivership assets. In addition, the Receiver has been granted specific powers to sue, marshal, collect and take possession of the property and books and records of EminiFX and certain assets of Eddy Alexandre.

The assets collected will ultimately be distributed in a manner to be determined and approved by the court at a later time.

Why is EminiFX in receivership?

EminiFX is in receivership because it was alleged to have been operated in a Ponzi-like manner, offering unrealistic returns of 5.00-9.99% per week without any corresponding investments that would support those returns.  The Receiver’s investigation, as summarized in the Financial Condition Report filed on May 15, 2023, has demonstrated that withdrawals from EminiFX were funded with contributions from EminiFX users, rather than from investment gains.  See the Commodity Futures Trading Commission’s Complaint, filed on May 11, 2022, for additional allegations that led to the Receivership.

What is the status of the Criminal Case against Alexandre?

On February 10, 2023, Eddy Alexandre pleaded guilty to one count of commodities fraud and entered into a Consent Preliminary Order for Forfeiture, available HERE.  That order states, in paragraph 11:  “All assets distributed to the victims by the Receiver in the CFTC Action that were obtained from the Defendant and EminiFX shall be applied towards the satisfaction of the Money Judgment.”

On July 18, 2023, Eddy Alexandre was sentenced to nine (9) years of imprisonment.  Mr. Alexandre is currently incarcerated.

Will Eddy Alexandre have continued involvement?

The Receiver has terminated Eddy Alexandre from EminiFX. The Receiver has taken custody of EminiFX’s assets and operations.

Who does the Receiver work for?

The Receiver is an agent of the Court and therefore works for the appointing judge. The beneficiaries of the Receiver's work are the members, creditors, employees and parties who have an interest in the estate.

Where can I learn more about the Receivership and obtain periodic updates?

Additional information about the Receivership can be found at www.eminifxreceivership.com. Status reports as filed with the Court will be posted on the receivership website as they become available.

I was an EminiFX User. How do I verify my transactions?

On August 29, 2023, the Court entered an Order approving the verification of User Transaction Procedures (docket no. 228). Additional information about the transaction procedures can be found HERE.  An e-mail will be sent to all known users of the EminiFX system on or about September 12, 2023.  The e-mail will provide the user with login information and instructions on how to log onto the portal to verify or update user transactions.  Users should also refer to the “Frequently Asked Question” section specific to the user portal, as well as YouTube videos, which will be made available at the time of the launch of the user portal.

How do I get my money back if I was a member of EminiFX?

If you were a member of EminiFX, you will need to verify your transactions using the Portal. The Receiver will, at a later date, propose a process to the Court to return money to the members. Please monitor this site, and the email address you used to sign up for EminiFX.com, for additional information.

I heard some people got refunds already. Is this true?

No. The Receiver has NOT filed a distribution plan in this case or requested that the Court approve ANY distributions.

Can I write off my investment loss?

The Receiver cannot give tax or other legal advice. Please consult with your accountant or tax advisor and seek their advice.

I did not have an EminiFX account and was not an EminiFX User. How do I file a claim?

If you are not an EminiFX User or have a Claim against EminiFX not based on your status as a User, you must complete and serve a Proof of Claim.  The proof of claim form will be sent to parties that have advised the Receiver that they may have a claim against EminiFX and the proof of claim form is also available on this website.  Additional information about the Non-User Proof of Claim Procedures can be found here.

Will the Receivership have any assets to pay claims?

The Receiver believes that all material EminiFX assets have been turned over to the Receivership, subject to any right to pursue claims against third parties as appropriate. All digital assets in the Receivership have been liquidated, and the Receiver has placed the cash in interest-bearing accounts. As of August 2023, there is over $153 million in cash in the Receivership. For more information please see the Receiver’s most recent status report, linked to on the homepage, and or the Asset Recovery section of the website HERE.

How will the money be distributed?

Once the User Transaction Procedures process is complete, the Receiver intends to develop a distribution plan for Court approval.  That process has not yet begun and will be influenced by the outcome of the claims filing process, the verification of user transactions and the subsequent determination of user claims.  The Receiver will provide further updates on a plan of distribution at the appropriate time in the case.  Any plan will be subject to Court approval and interested parties will have the opportunity to review any proposed plan of distribution before approval.

Do you have an estimate of what percent of our original investment may be returned to us in the form of a distribution?

The Receiver does not have this information available yet. The timing and amount of any distribution remains uncertain.

When will additional updates to investors be provided and how do I receive these?

Please continue to check the website for periodic updates. To subscribe to receive updates as items are filed on the civil docket, please visit www.eminifxreceivership.com/civil-docket and click on the blue "Subscribe" button. From there, you can sign up to get email notifications as pleadings are filed, daily, or weekly.

Who do I contact for additional information?

You may submit an inquiry by email at EminiFX@Stretto.com or by calling (855) 228-3721 (toll-free) or 1(949) 407-5078 (international).