According to the U.S. Department of Justice, the head trader of a global Ponzi scheme worth $100 million has pleaded guilty to violating securities laws and faces up to five years imprisonment. According to the U.S. Department of Justice (DOJ), "The defendants allegedly misappropriated large amounts of investors' funds to lease a Lamborghini and shop at Tiffany & Co., make a purchase on a second house, and more strong>
Empiresx's Head Trader Pleads Guilty
The U.S. Department of Justice (DOJ), announced Thursday that Joshua David Nicholas pleaded guilty to his role in a global cryptocurrency investment fraud scheme that amassed about $100 million from investors.
A 28-year old Florida man confessed that he and others had made many misrepresentations regarding Empiresx, a purported cryptocurrency exchange, to investors. These included promising "guaranteed returns" and claiming Empiresx operated an artificial and human-intelligence trading bot to maximize profits for investors.
The DOJ provided:
Empiresx instead operated a Ponzi scheme, paying investors who were not yet in the system with money from Empiresx investors.
In June, the U.S. Securities and Exchange Commission (SEC), also charged Nicholas and Empiresx founders Emerson Pires and Flavio Gncalves, both from Brazil, with violating the registration and antifraud provisions of Securities Act of 1933 and Securities Exchange Act of 1934.
The securities regulator noted that Empiresx had never registered its investment program with SEC.
The bot was fake and Nicholas' trading caused significant losses. Empiresx only received a small amount of the investors' funds.
The SEC stated that the defendants allegedly stole large amounts of money from investors to lease a Lamborghini and shop at Tiffany & Co. to pay for a second home.
In June, the Justice Department indicted the three men with "one count each of conspiracy to wire fraud and one count each of conspiracy to defraud securities fraud."
The Justice Department stated:
Nicholas pleaded guilty on one count of conspiracy for securities fraud. He faces a maximum sentence of five years imprisonment.
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By: Kevin Helms
Title: Head Trader of $100M Global Crypto Ponzi Scheme Pleads Guilty in US
Sourced From: news.bitcoin.com/head-trader-of-100m-global-crypto-ponzi-scheme-pleads-guilty-in-us/
Published Date: Tue, 13 Sep 2022 11:30:13 +0000