EminiFX Receiver's Lawsuit Against Interactive Brokers Moves to New York State Court

A lawsuit initiated by the receiver of EminiFX against Interactive Brokers LLC (IBKR) has been remanded to the Supreme Court of the State of New York, County of New York, after being initially filed in state court and then removed to the federal level. The order to terminate the lawsuit in the New York Southern District Court was signed by Judge Valerie E. Caproni on April 10, 2025.

David A. Castleman, the receiver appointed in the wake of a Commodity Futures Trading Commission (CFTC) action against EminiFX for allegedly operating as a Ponzi-like scheme, had sued IBKR in state court. IBKR subsequently argued for removal to the federal court, citing federal question jurisdiction. However, the court disagreed with this assertion and has sent the case back to the state level.

Castleman's lawsuit against IBKR alleges negligence and aiding breach of fiduciary duty. The receiver is seeking damages solely for the benefit of EminiFX customers, stating that IBKR should have known that millions of dollars deposited by EminiFX leader Alexandre into his personal account in late 2021 and early 2022 were customer funds and that EminiFX was potentially a Ponzi scheme.

According to the receiver's complaint, these deposits, totaling over $9 million, were largely lost through risky investments on IBKR's platform. The receiver aims to recover at least $7,287,055.60, representing the estimated losses incurred after IBKR allegedly enabled Alexandre's actions. The total losses in EminiFX are reported to be over $55 million. The case will now proceed in the New York State Supreme Court.