Distribution Plan

On August 9, 2024, the Receiver filed with the Court a distribution plan (the “Plan”), which can be found HERE (English Version).  The Plan filed by the Receiver sets out, among other items:

• The framework for how EminiFX User Claims will be calculated

o    Only Verified or Resolved Transactions shall be used
o    ROI, Bonuses, and Internal Transfers will not be counted

• How distributions to EminiFX Users will be calculated using the “Rising Tide” method
• The Distribution method and eligibility issues

These are the important dates relevant to the Plan:
 

DATE	EVENT
August 9, 2024	The Receiver filed the Plan, including a brief in support HERE (English Version)
August 14, 2024	The Receiver’s virtual Town Hall on the Distribution Plan is available at https://youtu.be/p5c8PHjEZTc
August 26, 2024	User responses to the Plan must be submitted on the User Portal. No person may file a response or a reply directly with the Court unless such person has filed a motion to intervene that has been granted by the Court.
September 10, 2024	User responses anonymized by the Receiver and filed with the Court HERE. Alexandre filed a response with the Court HERE.
September 27, 2024	CFTC filed a reply brief with the Court HERE. Receiver filed a reply brief with the Court HERE.
January 21, 2025	The Court approved the Receiver’s distribution plan in a decision HERE
January 23, 2025	The Receiver announced a $100 million distribution HERE Class 3 Rising Tide Percentage:  45% Class 3A Rising Tide Percentage:  55%

 

Distributions will begin in February 2025 to all eligible users.  EminiFX investors must provide payment information by January 31, 2025 to receive a payment in the first wave.  After that, the Receiver will periodically process distributions as more users provide payment information.  There will be enough money set aside to pay all initial distributions.  However, you must provide your payment information or your distribution may be delayed or impossible to deliver to you.

 

Town Hall

A town hall to discuss the Initial Distribution Plan, held on the Receivership’s YouTube channel on January 23, 2025, can be found here: https://youtu.be/fEYMZiQQAyQ. A town hall to discuss the Plan, held on the Receivership’s YouTube channel on August 14, 2024, can be found here: https://youtu.be/p5c8PHjEZTc.

How and When to Provide Plan Feedback 

All feedback was required to be submitted via the User Portal on or before August 26, 2024. The Receiver compiled that feedback and filed it with the Court on September 10, 2024. A copy of that filing can be found HERE.

EminiFX User Claims and User Portal 2.0

The Plan finalized how EminiFX user claims are calculated.  EminiFX user claims are going to consist of the Verified and Accepted deposit transactions on your User Portal Transaction Log.  Similarly, the Verified and Accepted withdrawal transactions on your User Portal Transaction Log will be used to calculate the amount of your distribution.  The transactions represent actual funds into EminiFX, and actual funds out of EminiFX.

Claims Do NOT Include ROI, Bonuses, and Internal Transfers:  EminiFX user claims will not consist of the ROI, will not consist of the various referral and other bonuses, and will not consist of internal transfers between users.  The ROI, bonuses, and transfers do not represent the payment or transfer of actual funds into EminiFX, and thus will not be included in users’ claims under the Plan.

The Receiver expects to launch User Portal 2.0 around October 2024.  The website and log-in information will be the same, but the transactions will be updated to show the result of the Receiver’s initial review.  All users will be given the opportunity to provide payment information in User Portal 2.0, which the Receiver will use for any distributions that are made to that user.  Users with transaction disputes will also be given opportunities to resolve those disputes (see below for more detail).  Users will receive further instructions about User Portal 2.0 at a later date.

 

Distribution Calculation – Rising Tide

The Plan uses a “rising tide” formula for calculating distributions. This means that your distribution is calculated based on your total pre-receivership deposits, and your total pre-receivership withdrawals are counted against that calculation.  Essentially, the Plan treats pre-receivership withdrawals the same as post-receivership distributions, because both are made from the same pool of commingled funds.

The Receiver set an initial rising tide percentage of 45% for Class 3 and 55% for Class 3A. From time to time, as the Receiver believes it is prudent to release reserves, the Receiver may increase that percentage.  When the Receiver increases the percentage, users who already received distributions will generally be eligible for supplemental distributions.

Distribution = (Total Deposits x Rising Tide %) – (Withdrawals + Prior Distributions)

This is an example of how rising tide works for four different users, all of whom have $10,000 in deposits, but different withdrawal amounts.  In this example, the rising tide percentage starts at 30% and is then increased to 50%.  This example—which is only an example and not an indication of the rising tide percentages that will be used in this case—shows how the goal of rising tide is to try to make the total of withdrawals plus distributions as even as possible for users who deposited the same amount.

 

Sample User	Receiver Distribution 1 30% Rising Tide	Receiver Distribution 2 50% Rising Tide	Sum of Receiver Distributions	Sum of Withdrawals and Receiver Distributions
User A Deposits            $10,000 Withdrawals      $0	$3,000	$2,000	$5,000	$5,000
User B Deposits            $10,000 Withdrawals      $2,000	$1,000	$2,000	$3,000	$5,000
User C Deposits            $10,000 Withdrawals      $4,000	$0	$1,000	$1,000	$5,000
User D Deposits            $10,000 Withdrawals      $8,000	$0	$0	$0	$8,000

The other commonly used distribution calculation is net investment, which subtracts withdrawals from deposits, and calculates distributions pro rata using a percentage of that net amount.  For users who did not withdraw, that percentage will be lower than a rising tide percentage for the same amount of total dollars distributed.  For example, a user who deposited $10,000 and withdrew $0 would receive $3,000 under a rising tide percentage of 30%, but would receive $2,500 under a net investment percentage of 25%.

The Receiver believes that rising tide is fairer than the net investment method, because users who withdrew funds pre-receivership did so from the same commingled pot of funds that will be used to make distributions post-receivership.  In addition, users who made withdrawals pre-receivership have had access to those funds since 2022.

 

Distribution Method and Timing

The Receiver and his team are preparing to process distributions to eligible users who have provided valid payment information on the User Portal 2.0, and will make periodic distributions throughout the year.

A user will be eligible for a distribution under the Plan if the following conditions are met:

• The Court has approved the Distribution Plan
• The User’s account has no disputed transactions remaining
• The User has provided valid payment information
• The Receiver has set a Rising Tide Percentage
• The User’s verified withdrawals (if any) divided by verified deposits are below the Rising Tide Percentage
• The User’s account is not subject to a further review hold (this will not affect most users)

The Receiver will provide options for electronic payments via services such as Paypal, Venmo, Zelle, or ACH, or for check payments to be sent via mail to a U.S. address.  Overseas users who cannot receive payment in any of these ways will be able to contact the Receiver for additional assistance. The Receiver encourages all users to provide their payment information as soon as they can.

Disputed Transactions and Objections

These are the most common categories of disputed transactions that users whose transactions have not been verified can expect to see:

• Seeking ROI/Bonuses  A user is seeking to add ROI or a multilevel marketing bonus.  These are disallowed transactions under the Plan.  A user will be given the opportunity to provide evidence that the user is seeking an actual deposit.
• Insufficient Documentation:  The Receiver does not have enough documentation to support adding the disputed transaction to the log.  Users will have a chance to provide additional documentation or explanation using User Portal 2.0 the change or addition of a contribution.  
• Duplicate Transaction or Different Owner:  A user is attempting to claim a transaction that is already on their transaction log (duplicate transaction) or was assigned to another user and is on that user’s transaction log (different owner).
•  Inter-User Dispute:  A user sent money to another user outside of EminiFX and there is no evidence that the money was deposited into the EminiFX system.  This situation may happen when a user who deposited on behalf of another user did not reassign a verified deposit.
• Transfers Not Recognized:  A user received  transferred funds within the EminiFX system from another user, rather than any funds moving into the EminiFX system.

Users will be given the option to accept some or all of the Receiver’s determinations in the User Portal 2.0, without challenging or objecting to the dispute.  In many cases, when a user accepts all of the Receiver’s determinations, that user’s account will become eligible for distribution—unless there are other issues, which the Receiver belies will impact only a limited number of users.

 

Other Potential Issues with EminiFX User Claims

Liens on Claims: There may be some cases in which a third party is able to place a legal lien on a claim.  The Receiver has posted a form HERE for anyone placing a lien to submit, along with any necessary documentation.  There is a $250 processing fee to submit a lien, as well as a charge on any distribution itself.  Affected claimants will be given notice of any such lien and an opportunity to respond.

Deceased Claimants:  There will unfortunately be some cases in which claimants pass away at any point in the claims and distribution process.  The Receiver has posted a form HERE for the deceased’s representatives to submit to transfer the claim to the deceased’s estate, along with any necessary documentation.  The Receiver and his team will work with affected representatives on any documentation or other issues to the extent possible.

Review Holds:  There may be some limited instances in which an account is held for further review, typically because the account is either that of an EminiFX insider, or the holder of the account also has a net winner account.  The Receiver may request consolidation, subordination, or other type of litigation-related offset.  All such review holds will expire on June 30, 2025, unless the Receiver has made a demand or initiated a process with the Court.  In general, the Receiver expects to reach out to any affected user to attempt to resolve the hold, if possible.

OFAC/Compliance:  The Receiver is legally obligated to comply with all applicable laws when transferring money, including regulations issued by the Office of Foreign Assets Control (OFAC).  The Receiver and his team will work with any impacted claimants to the extent possible.