www.haitiantimes.com
By Larisa Karr
NEW YORK — Eddy Alexandre, the Long Island man accused of running a $59 million cryptocurrency-based Ponzi scheme, has been released on bail and is to remain under house arrest, according to multiple sources following his case. Meanwhile, more Haitians have come forward, worried and anxious about what’s to happen with the funds now under government control.
“My cousin introduced it to my uncle, who invested $5,000,” said Jude Joseph, a police officer in Brooklyn. “He was upset because he invested all that money and he’s not getting it back.”
In the weeks since Alexandre’s May 12 arrest, more people have come forward saying they lost thousands of dollars or barely escaped joining the purported scam.
On the Haitian Times Instagram alone, one person said, “Sounds about right. He got my cousin and uncle too.” Another wrote, “People I know are in it and he was trying to put me in it.”
Alexandre appeared to be well-known in certain circles in southeast Queens and Long Island’s Haitian communities, but the alleged scam had spread beyond those borders to other states. He was a regular guest on a YouTube variety show hosted by media personality and realtor Valerio Saint-Louis, who dedicated an entire show to Alexandre’s arrest in mid May.
During the program, his supporters defended his actions and said staunchly they had been able to cash out using Bitcoin weekly. Some also alluded to Alexandre wanting to elevate the community as a primary reason for giving him their money.
‘I cancel all your negative talk over eminix in Jesus name,’ one commenter posted.
EminiFx now in federal receivership, worrying many
Prosecutors say Alexandre encouraged his clients, many of them Haitian-Americans living in various states, to invest large sums of money. He allegedly told the clients that their investments in cryptocurrencies and foreign exchange trading would have large financial rewards and would subsequently send pay-outs to investors via platforms like Bitcoin.
Alexandre’s published phone number was disconnected.
Calls to prosecutors’ office had not been returned as of this writing.
Online and offline, some people wonder what will happen to the money seized or to the funds so many deposited into Alexandre’s accounts. Confounding matters further is that for weeks, the investors’ EminiFx accounts still showed a balance, leading them to conclude there was no theft.
People who had family members involved in the scam said Alexandre was promoting it through the church communities, which is how they got involved.
Since then, a receivership — a process through which a court-appointed officer is given permission to manage assets of a company in order to avoid bankruptcy – has been put in place. As of May 11, David Castleman of Raines Law has been temporarily appointed as the receiver, with the intent of preserving the website’s data and ensuring that investors can contact the firm in regards to the money they invested.
Flight risk among concerns raised in setting bail
Alexandre went to court on May 26, according to YouTuber Gwo Koze TV, for allegedly scamming a portion of millions collected through his platform, EminiFX. He was released the same day.
A text sent to the YouTuber, who supports Alexandre, supposedly said, ‘Our CEO got released on bail today and most importantly his legal team showed the court that all the alleged funds are available.’
In response, a majority of the video’s viewers expressed mixed sentiments for Alexandre, of Valley Stream. The comments ranged from ‘Thank you god, he will continue working’ to another, ‘My little $1K pales in comparison to the people who invested tens of thousands and millions into his pyramid scheme.’
Bail conditions announced May 26 include: A $3 million Personal Recognizance Bond, travel limited to Southern and Eastern New York State, a surrendering of official travel documents, 24/7 house arrest with monitoring, a signed extradition waiver, a ban on working in the financial sector, and a restriction on opening bank accounts or cryptocurrency transactions without approval.
Prior to his release, according to information from Behind MLM, the court’s decision to Alexandre’s request to change his bail release conditions was pending.
Days before, Alexandre proposed to change his bail conditions. However, the Department of Justice (DOJ) spoke out against such a move, saying they still believe Alexandre is hiding money away since he failed to disclose information about his financial accounts.
Without proper knowledge of Alexandre’s complete assets, they said they believed he “lacks the resources to pay for private security at his residence,” as required by the presiding judge.
The DOJ also considers Alexandre a flight risk, particularly to places like Dubai.
