EmpiresX Scam Ends with Founders Ordered to Pay $130M
A federal judge has found the EmpiresX founders guilty, issuing a $130 million penalty and permanently banning them from U.S. financial markets.
The EmpiresX saga has finally reached its climax, following a CFTC-led investigation that began on June 30, 2022. But while Emerson Pires and Flavio Goncalves made a clean getaway to Brazil, their accomplice Joshua Nicholas wasn’t so lucky—he was arrested and sentenced in 2022.
Curious about other crypto scandals? Read: What’s Going on With TikTok and What It Means for Crypto
According to authorities, Empires Consulting masterminded the EmpiresX scam, promising sky-high crypto returns to unsuspecting investors. Their biggest weapon? Targeted online ads, which helped them rake in over $40 million in digital assets before the scheme collapsed.
The scammers burned through millions on designer goods, private jet trips, and luxury experiences, stashing only a small portion of their haul in Bitcoin. To keep the con going, they showed investors a fake dashboard, flashing phony profits while locking withdrawals, buying themselves time before the inevitable crash.
Authorities managed to seize $22.8 million in digital assets, but justice may never be fully served. The U.S. Department of Justice has placed them on an international wanted list, yet Brazil’s strict no-extradition policy for its citizens makes an arrest nearly impossible.
More on crypto fraud: Social Engineering in Crypto: Top 5 Fraud Schemes
The content on The Coinomist is for informational purposes only and should not be interpreted as financial advice. While we strive to provide accurate and up-to-date information, we do not guarantee the accuracy, completeness, or reliability of any content. Neither we accept liability for any errors or omissions in the information provided or for any financial losses incurred as a result of relying on this information. Actions based on this content are at your own risk. Always do your own research and consult a professional. See our Terms, Privacy Policy, and Disclaimers for more details.
Articles by this author
