The distribution strategy for EminiFX victim claims has been authorised.
The EminiFX Receiver is permitted to disburse collected funds to fraud victims in accordance with an order granted on January 21st.
The Receivership received claims from more over 25,000 EminiFX victims during a claim procedure that started in late 2023.
from the order of the court;
Over $260 million was put by investors into EminiFX-run accounts; however, the Receiver has only secured and liquidated about $153 million of that amount so far.
Due to this deficit, the Receiver is unable to reimburse investors for all of their money.
Rather, the Distribution Plan stipulates that money would be disbursed pro rata, which means that every investor’s claim will be determined using a predetermined method.
In summary, the amount invested by an EminiFX affiliate is multiplied by a “fixed percentage.”
The Receiver determines the Rising Tide Percentage based on all available data, namely the quantity of money the Receiver has on hand and may release, as well as the quantity of new claims that must be handled.
For the first payout, the Rising Tide Percentage should be set cautiously. As more money becomes available for distribution, it should be raised periodically for following installments.
The sum that the equation yields is paid out after any withdrawals are deducted.
One payout will be made to EminiFX affiliates who invested $1000 or less. Distribution payments will be made over “multiple rounds” to investors who contributed $1001 or more.
Eddie Alexandre, the creator of EminiFX, objected to the Receiver’s suggested distribution strategy on many occasions.
Alexandre’s arguments were all dismissed.
Simply put, every withdrawal from an EminiFX account came from the same commingled pool of cash that all investors inadvertently contributed to since EminiFX was a Ponzi scam that could not produce any real profits.
Any pre-Receivership withdrawal from that fund pool achieved the same objective presently pursued by the Distribution Plan: giving investors back as much of their EminiFX contributions as feasible.
The Rising Tide approach is the proper distribution technique in this instance as it considers withdrawals to be the same as Receivership distributions.
The Receiver’s plan to deal with EminiFX net-winners (affiliates who withdrew more than they invested) was also approved by the court as part of its distribution order.
Net Winners will not be eligible for any payout due to the structure of the Rising Tide distribution process.
However, the Receiver may file a lawsuit against them, especially if they were involved in the fraud plan.
The Receiver is considering sending Net Winners settlement proposals, which would free them from the Receiver’s lawsuit in exchange for returning a part of the money they received.
In the absence of a settlement, the Receiver may bring prospective affirmative causes of action against the Net Winners.
Because it avoids drawn-out and expensive litigation and aims to maximise restitution for harmed investors, the Court deems the Receiver’s proposed treatment of Net Winners to be fair and reasonable.
The EminiFX Receiver submitted a Notice of Initial Distribution on January 23.
The Receiver disclosed a first payout of $100 million in the filing.
22,643 Class 3 EminiFX victims will get a rising tidal proportion of 45%.
Class 3A, which includes 7991 EminiFX victims, will get a rising tidal proportion of 55%.
“Will receive a payment in the first wave of payments in early February 2025” are EminiFX victims who have a legitimate claim and have given the Receivership their payment details.
Throughout 2025, payments will be paid in waves as long as consumers continue to provide payment details.
A third effort to stop victim distribution procedures was made by a group of EminiFX investors who seemed to be headed by Pierre Acluche.
On January 30th, the court rejected their absurd arguments once again.
Many of these same potential intervenors have previously made arguments that are substantially the same and have been rejected by the Court three times.
The contention made by Mr. Acluche in his letter that the Court’s Opinion approving the Distribution Plan was incorrect because it was issued prior to the Motion for Summary Judgement being fully stated is not supported by the Court.
The issue of whether the Distribution Plan is fair and reasonable is thus unrelated to Mr. Acluche’s claim that the CFTC and the SEC lack the power to oversee digital asset exchanges.
It’s unclear whether Acluche is a net-winner trying to delay any clawback actions or if his objections were made in good faith.
Alexandre submitted an urgent motion on January 28th, requesting permission to proceed with an appeal, as part of an ongoing wave of pointless filings (almost all of which I have simply disregarded in our reporting).
Alexandre attempted to challenge the court’s approval of the distribution plan and the CFTC’s move to have a counterclaim against her filed dismissed.
In accordance with an order answering Alexandre’s motion dated February 3rd;
In accordance with 28 U.S.C. § 1915(a)(3), the Court certifies that any appeal of the January 21, 2025, Order would not be considered in good faith.
Ad hominem assaults on the CFTC, the Receiver, and the Undersigned make up the majority of Mr. André’s Opposition to the Motion to Approve the Distribution Plan (Dkt. 394); it lacks any solid factual or legal grounds that may be taken into account on appeal.
This submission is DENIED if it is interpreted as a request to halt the Receiver’s distribution of monies.
The Court determines that the January 22, 2025, Order does not contain a controlling point of law or provide a significant basis for difference of opinion since Mr. Alexandre’s affirmative defences and counterclaims were baseless.
The court’s decision to reject Alexandre’s counterclaim is the subject of the ruling dated January 22.
According to a Status Report submitted on January 31st, the EminiFX Receivership has around $52 million in seized cash after deducting the $100 million dividend that was previously declared.
According to the Receiver’s assessment, Eddie Alexandre also seems to have concealed a $509,986 purchase of high-end timepieces.
The Receiver’s investigation revealed that both transactions, totalling $509,986, were sent to a luxury watch retailer to buy two expensive watches: an Audemars Piguet Royal Oak 41 Chronograph Black Men’s Watch for $129,609 (plus taxes) and a Patek Philippe Rose Gold Nautilus for $351,509 (plus taxes). This was made possible by advancements in Bitcoin tracing technology.
The inquiry conducted by the Receiver also showed that Mr. Alexandre was the buyer of the two watches, which Mr. Alexandre failed to declare to the Receiver in accordance with the Consent Order.
In clear violation of the Consent Order, which mandates the return of all Receivership property, Mr. Alexandre refused to disclose the status and location of the watches, but he did not reject the purchase.
Mr. Alexandre has not cooperated with the Receiver’s demand letter as of the filing of this report.
In light of the timepieces’ substantial worth, the receiver is considering the best course of action to retrieve them for the benefit of EminiFX users.
The Receiver writes about EminiFX net-winners:
In the First Quarter of 2025, the Receiver expects to provide settlements to Net Winners, enabling them to settle illegal transfer allegations in return for half of their net wins (withdrawals less deposits).
