A proposed EminiFX victim claim distribution plan has been approved.

As per an order issued on January 21st, the EminiFX Receiver is authorized distribute recovered assets to victims of the scam.

Following a claim process that began in late 2023, over 25,000 EminiFX victims filed claims with the Receivership.

From the court’s order;

Investors deposited more than $260 million into accounts operated by EminiFX, but, to date, the Receiver has secured and liquidated only approximately $153 million.

Given this shortfall, it is not possible for the Receiver to return to investors 100% of all invested funds.

Instead, the Distribution Plan calls for funds to be distributed on a pro rata basis, meaning that all investor claims are to be calculated pursuant to a fixed formula.

In a nutshell how much an EminiFX affiliate invested is multiplied by a “fixed percentage”.

The Rising Tide Percentage is set by the Receiver in light of all available information, chiefly the amount of funds the Receiver is holding in reserve and able to release and the number of additional claims that need to be processed.

The initial Rising Tide Percentage is to be set conservatively for the first distribution and increased from time to time for subsequent distributions as more funds become available for distribution.

Any withdrawals are subtracted, and whatever amount the equation comes to is paid out.

EminiFX affiliates who invested $1000 or less will receive one pay out. Those who invested $1001 or more will receive distribution payments over “multiple rounds”.

EminiFX founder Eddie Alexandre submitted multiple objections to the Receiver’s proposed distribution plan.

All of Alexandre’s objections were rejected.

Put simply, because EminiFX was a Ponzi scheme that did not generate any actual profits, every withdrawal from an EminiFX account came out of the same commingled pool of funds into which all investors unknowingly contributed.

Any pre-Receivership withdrawal from that pool of funds accomplished the same goal that the Distribution Plan now aims to achieve: returning to investors as much of the money they contributed to EminiFX as possible.

Because the Rising Tide method treats withdrawals as the equivalent of Receivership distributions, it is the appropriate distribution method in this case.

As part of its distribution order, the court also authorized the Receiver’s proposal to deal with EminiFX net-winners (affiliates who withdrew more than they invested).

Given the nature of the Rising Tide method of distribution, Net Winners will not be entitled to any distribution.

They may, however, be subject to litigation by the Receiver — particularly to the extent that they may have contributed to the scheme to defraud.

“The Receiver contemplates making settlement offers to Net Winners, offering a release from litigation by the Receiver in exchange for return of a portion of amounts received by Net Winners.

Absent any settlement, Net Winners may be subject to potential affirmative Causes of Action brought by the Receiver.”

The Court finds the Receiver’s proposed treatment of Net Winners to be fair and reasonable, as it avoids time-consuming and costly litigation and seeks to maximize recovery for injured investors.

On January 23rd, the EminiFX Receiver filed a Notice of Initial Distribution.

In the filing, the Receiver revealed a $100 million initial distribution.

  • 22,643 EminiFX victims grouped into Class 3 will receive a 45% rising tide percentage
  • 7991 EminiFX victims grouped into Class 3A will receive a 55% rising tide percentage

EminiFX victims with a valid claim who have provided the Receivership with payment information, “will receive a payment in the first wave of payments in early February 2025”.

As users continue to provide payment information, periodic waves of payments will be made throughout 2025.

A group of EminiFX investors, seemingly led by Pierre Acluche, filed a third attempt to halt victim distribution proceedings.

The court once again denied their nonsense arguments on January 30th.

The Court has already considered and rejected materially identical arguments raised by many of these same prospective intervenors on three separate occasions.

The Court finds no merit in the claim in Mr. Acluche’s letter that the Court’s Opinion approving the Distribution Plan was improper because it was rendered before the Motion for Summary Judgment was fully briefed.

Mr. Acluche’s argument that the SEC and the CFTC lack authority to regulate digital asset exchanges is likewise irrelevant to the question of whether the Distribution Plan is fair and reasonable.

It’s unclear whether Acluche’s objections were made in good faith or whether he’s a net-winner seeking to stall potential clawback proceedings.

As part of a continued spate of frivolous filings (nearly all of which I’ve just ignored in our reporting), Alexandre filed an emergency motion seeking leave to proceed with an appeal on January 28th.

Alexandre sought to appeal the court’s distribution plan approval and granting of the CFTC’s motion to dismiss a counterclaim filed by Alexandre.

As per a February 3rd order addressing Alexandre’s motion;

The Court certifies pursuant to 28 U.S.C. § 1915(a)(3) that any appeal of the January 21, 2025, Order would not be taken in good faith.

Mr.Alexandre’s Opposition to the Motion to Approve the Distribution Plan (Dkt. 394) consists predominately of ad hominem attacks on the CFTC, the Receiver, and the Undersigned; it contains no credible legal or factual arguments for consideration on appeal.

To the extent this filing can be construed as a request to stay the Receiver’s distribution of funds, that request is DENIED.

Because Mr. Alexandre’s counterclaims and affirmative defenses were frivolous, the Court concludes that the January 22, 2025, Order neither involves a controlling question of law nor presents a substantial ground for difference of opinion.

The January 22nd order pertains to the court dismissing Alexandre’s counterclaim.

As per a January 31st filed Status Report, minus the announced $100 million distribution, the EminiFX Receivership is sitting on around $52 million in recovered funds.

The Receiver’s report also details Eddie Alexandre seemingly hiding a $509,986 purchase of luxury watches.

Due to advancements in Bitcoin tracing technology, the Receiver’s investigation identified that both transactions — totaling $509,986 — were sent to a luxury watch retailer to purchase two high-value watches: a Patek Philippe Rose Gold Nautilus for $351,509 (plus taxes) and an Audemars Piguet Royal Oak 41 Chronograph Black Men’s Watch for $129,609 (plus taxes).

The Receiver’s investigation further revealed that Mr. Alexandre was the purchaser of the two watches, a detail that Mr. Alexandre did not disclose to the Receiver, as required by the Consent Order.

Mr. Alexandre did not deny the purchase of the watches, but refused to provide their status and location, in direct violation of the Consent Order, which requires the turnover of all Receivership property.

As of the filing of this Report, Mr. Alexandre has not complied with the Receiver’s demand letter.

Given the significant value of the watches, the Receiver is evaluating next steps to recover the watches for the benefit of EminiFX users.

With respect to EminiFX net-winners, the Receiver writes;

The Receiver anticipates making settlement offers to Net Winners in the First Quarter 2025, allowing them to resolve fraudulent transfer claims in exchange for 50% of their net winnings (withdrawals less deposits).

Stay tuned for updates as BehindMLM continues to track the CFTC’s EminiFX case.