Beware of 3658 BTC & EminiFX – Review

The EminiFX Receiver was successful in recovering 3658 BTC from payment processor CoinPayments.

CoinPayments sent 3658.33264986 BTC to the EminiFX Receiver on November 20th, after an authorized “Turnover Agreement Application” made on November 15th.

The clawback was approved by the EminiFX Receiver, the SEC, and Eddie Andrexandre.

Today, 3658 BTC is valued around $59.2 million. When the CFTC sued EminiFX and its owner Alexandre in May, the identical amount had a street value of $107 million.

The reclaimed bitcoin will be stored in a “completely segregated cold storage custody wallet” pending contact with EminiFX investors and additional guidance from the court.

Eddy Alexandre is now facing criminal accusations in connection with the EminiFX Ponzi scam.

The DOJ was directed as part of those actions to

produce an affidavit or affidavits detailing the nature and extent of the prosecutors’ and FBI’s interactions with the CFTC and the Receiver during their investigations into (Alexandre).

We’ve previously been given information on how the FBI apprehended Alexandre.

An affidavit submitted on November 15th by an Assistant US Attorney gives further information of interest (notice that “the Government” refers to the DOJ).

Each of the FBI, the government, and the CFTC launched their own investigations.

The Government and/or the FBI did not undertake collaborative witness interviews with the CFTC or the Receiver.

The CFTC and the Receiver had no involvement in the Government’s charge determinations or the formulation of the Government’s prosecuting strategy.

To work on the criminal inquiry, no one from the CFTC or the Receiver’s office was appointed as a special Assistant US Attorney.

The CFTC and the Receiver were not engaged in the grand jury presentation and did not get grand jury transcripts.

The CFTC and the Receiver were not present for the execution of search warrants or response reviews.

Materials supplied to the Government in response to grand jury subpoenas were not obtained by the CFTC or the Receiver.

The CFTC and the Receiver have not been to Court with the Government.

The government did not conduct any investigations at the request of the CFTC or the Receiver.

The government did not order the CFTC or the Receiver to conduct any investigations.

The CFTC arrived to Alexandre’s presentment on the day of his arrest to serve him with legal procedure related to the CFTC’s case against him. The CFTC has not appeared in any further Court hearings related to this lawsuit.

Significant portions of the affidavit have been omitted because they relate to aspects of the investigations.

normally kept private, and if exposed, might jeopardize future investigations

The redacted affidavit parts are accessible for the Judge’s in-camera scrutiny.

On November 16th, Alexandre’s counsel filed an objection to the redactions. Later that day, the DOJ replied, claiming

The defendant is looking for precise and specific information on communications between the government and the CFTC.

The redacted information, in particular, contains detailed information about the Government’s strategic decisions throughout the investigation, such as efforts to gather evidence and ensure that the defendant did not flee prosecution; the timing of the Government’s investigation; what was shared with the grand jury; and information about grand jury requests issued by the Government.

Without a preceding demonstration of ill faith, the defendant is not entitled to such information.

The defendant tries to skirt this caselaw by asking the same sort of comprehensive material that would normally be subject to disclosure only after a judgment of ill faith.

Because the defendant has not demonstrated ill faith, he is not entitled to the unredacted Affirmation including this material.

The subject is still being decided. Alexandre is expected to stand trial in March 2023.

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