BlockNews.com
  • Crypto
  • NFT
  • Metaverse
  • DeFi
  • Business
  • Technology
  • Opinion
  • Guides
No Result
View All Result
SUBSCRIBE
BlockNews.com
  • Crypto
  • NFT
  • Metaverse
  • DeFi
  • Business
  • Technology
  • Opinion
  • Guides
No Result
View All Result
BlockNews.com
No Result
View All Result
Home Business

EmpiresX’s Head Trader Pleads Guilty to $100 Million Crypto Fraudulent Ponzi Scheme

BlockNews Team by BlockNews Team
September 17, 2022
in Business, Crypto, Politics
Reading Time: 4 mins read
A A
EmpireX-logo
1
SHARES
11
VIEWS
Share on TwitterShare on Reddit

The head trader of EmpiresX pled guilty to conspiracy to commit securities fraud. The charges involve leading a crypto fraud scheme across international borders—one that led to about $100 million in losses for investors who are now encouraged to let the DOJ know about how they were injured. The DOJ remains committed to combating all types of crypto fraud. 

You might also like

Crypto Twitter Thinks the Fed’s $297B Balance Sheet Expansion Is ‘QE’, but It’s Not

Ripple-SEC Case: XRP Price Turns Bullish As Coinbase Hints At Relisting

Solana’s Top DEX Orca Restricts Access For American Users

Facts Behind the Ponzi Scheme

According to a DOJ press release, the head trader of EmpiresX pled guilty to conspiracy to commit securities fraud regarding “a global cryptocurrency-based Ponzi scheme that took in approximately $100 million from investors.” This case was even mentioned on the DOJ’s Criminal Division’s Twitter account. In a tweet, the DOJ wrote, 

EmpiresX Head Trader Pleads Guilty to Global Cryptocurrency Investment Fraud Scheme that Amassed Approximately $100 Million from Investors.

Mr. Joshua David Nicholas—28 years old—was the head trader of EmpiresX. His scheme—to which he admitted to—involved making fraudulent statements to promote EmpiresX. These misrepresentations involved a proprietary trading bot and fraudulent guaranteed returns. The false statements were made to investors/prosecutive investors to attract them to the company.

One of the issues, in this case, involved the company’s trading bot. Nicholas and his co-conspirators told the public that the trading bot used artificial and human intelligence to maximize the profits that investors could generate. 

However, this was far from the truth. Instead of guaranteeing investors high returns, EmpiresX operated a Ponzi scheme in a traditional sense—”by paying earlier investors with money obtained from later EmpiresX investors.”

Further, despite representations made, EmpiresX never registered nor attempted to register its investment program as a “security” with the Commission. Neither did the company qualify for an exemption from registration.

The Pleas and Next Steps for the Victims

Nicholas pled guilty to one count of conspiracy to commit securities fraud. He faces a maximum imprisonment term of five years, though the sentencing date has not been scheduled as of yet. 

The investors lured to the EmpiresX scheme are encouraged—as clearly mentioned on the DOJ’s press release—to visit a crypto enforcement DOJ website, read and follow the information on the page, and complete a Victim Impact Statement for the case. This Statement should describe how they and their family members have been affected by this crime.

An Increase in Crypto-Related Investigations

This case is significant because it was one of four cases that the DOJ brought against six individuals in July in four crypto cases.

These cases all represent different kinds of crypto-related fraud, including, according to the DOJ press release, “the largest known Non-Fungible Token (NFT) scheme charged to date, a fraudulent investment fund that purportedly traded on cryptocurrency exchanges, a global Ponzi scheme involving the sale of unregistered crypto securities, and a fraudulent initial coin offering,” the Ponzi scheme of which refers to the fraud perpetrated by EmpiresX.

The attorneys prosecuting the cases indeed voiced their opinions. Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division made clear that the focus of the DOJ is on protecting individuals against bad actors:

The Department of Justice and our partners are dedicated to using every available tool to protect consumers and investors from fraud and manipulation . . . . These indictments reflect our deep commitment to prosecuting individuals involved in cryptocurrency fraud and market manipulation.

U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida continued this overall position of the Justice Department by adding that new technologies will not be exempt from the law and that crypto-related fraud will be rooted out:

Our office is committed to protecting investors from sophisticated scammers seeking to capitalize on the relative novelty of digital currency . . . . As with any emerging technology, those who invest in cryptocurrency must beware of profit-making opportunities that appear too good to be true.

Conclusion

The DOJ will not waste any time investigating and prosecuting individuals and entities for violations of federal law involving crypto projects. Its investigation against the head trader of EmpiresX demonstrates this position. In addition to its study against the head trader—Nicholas—the DOJ had quite a busy July, which involved charges against six individuals in four different crypto fraud cases. Its arsenal of tools to investigate crypto fraud will likely increase.

Tags: BlockchaincryptoWeb3
TweetShareShare

Recommended For You

Crypto Twitter Thinks the Fed’s $297B Balance Sheet Expansion Is ‘QE’, but It’s Not

by BlockNews Team
March 22, 2023
0
crypto twitter

The most recent rise in the central bank's balance sheet, according to some analysts, is not as obviously stimulative as the one that came after COVID-19. The US...

Read more

Ripple-SEC Case: XRP Price Turns Bullish As Coinbase Hints At Relisting

by BlockNews Team
March 22, 2023
0
xrp

Coinbase could relist the XRP token if Ripple wins the ongoing lawsuit against the SEC. The exchange will initiate the relisting process immediately after the court pronounces itself...

Read more

Solana’s Top DEX Orca Restricts Access For American Users

by BlockNews Team
March 22, 2023
0
orca.so

US-based users will be banned from trading on Orca’s web interface beginning March 31st. Orca said the ban exempts those who trade directly using smart contracts and their...

Read more

DefiLlama Forks into a New Platform as Internal Disputes Unfolds

by BlockNews Team
March 22, 2023
0
DefiLlama

Blockchain data platform DefiLlama is in turmoil following its employee's rejection of its Token Launch Plan.  Now, the creators of one of DeFi's prominent dashboards have made a...

Read more

Massive USDT Transfer – Is This The Reason Behind The Current Crypto Market Shift?

by BlockNews Team
March 21, 2023
0
USDT

The crypto market has witnessed a dramatic couple of weeks, leading to uncertainties about what the future holds for the digital asset sector. Crypto debunking in the United...

Read more
Next Post
Coinbase-logo

Coinbase Employee Pleads Guilty To Charges Involving Insider Trading

Related News

Blockchain

How Blockchain Technology Will Change Leadership?

November 14, 2022
VitaDAO Logo

Pfizer Invests $4.1 Million into VitaDAO, to Fund Decentralized Science Research

January 31, 2023
Nubank-Crypto

Brazil’s Nubank To Launch It’s Own Cryptocurrency

October 21, 2022

Browse by Category

  • Breaking News
  • Business
  • Crypto
  • DeFi
  • Finance
  • Gaming
  • Guides
  • Investing
  • Media
  • Metaverse
  • NFT
  • Opinion
  • Politics
  • Social
  • Technology
  • Uncategorized
BlockNews.com

BlockNews.com brings you the most important Crypto and NFT news in the space.

CATEGORIES

  • Breaking News
  • Business
  • Crypto
  • DeFi
  • Finance
  • Gaming
  • Guides
  • Investing
  • Media
  • Metaverse
  • NFT
  • Opinion
  • Politics
  • Social
  • Technology
  • Uncategorized

RECENT POSTS

  • Crypto Twitter Thinks the Fed’s $297B Balance Sheet Expansion Is ‘QE’, but It’s Not March 22, 2023
  • Ripple-SEC Case: XRP Price Turns Bullish As Coinbase Hints At Relisting March 22, 2023
  • Solana’s Top DEX Orca Restricts Access For American Users March 22, 2023

© 2022 BlockNews.com - Crypto and NFT news website by JRNY Club.

No Result
View All Result
  • Home
  • Crypto
  • NFT
  • Metaverse
  • DeFi
  • Business
  • Technology
  • Opinion
  • Guides

© 2022 BlockNews.com - Crypto and NFT news website by JRNY Club.

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?