The Federal Bureau of Investigation (FBI) has accused 50-year-old New Yorker Eddie Alexander of cryptocurrency fraud. This is stated in court documents.

According to the FBI, Alexander founded and operates the digital asset trading platform EminiFX. It allegedly attracted “hundreds of individual investors” and promised a 5% weekly return, along with doubling their investments in five months.

Authorities claim that the accused did not deposit most of the funds entrusted to him. The FBI said it transferred money to his personal accounts and spent about $170,000 buying expensive cars, renting offices, marketing and hiring staff.

Alexander misled clients about their investments and claimed that the funds were managed by “experienced traders” of EminiFX. However, the founder of the company did not specify exactly what they are investing in.

The FBI estimated damage from Alexander’s actions at $59 million. He faces 10 and 20 years in prison twice.

Recall that in May, Mining Capital Coin CEO Luis Capucci Jr. was a defendant in a $62 million fraud case.