Connect with us

Hi, what are you looking for?

Crypto
Crypto
#image_title

Cryptocurrency

Empires X Founders were fined $130 million for a fraudulent crypto scheme

A US court levied over $130 million in fines on the founders of EmpiresX, a fake cryptocurrency platform that duped investors out of $40 million. The court’s decision involves significant financial penalties and a ban from US financial markets for the founders.

A US federal court fined the Brazilian founders of the fake cryptocurrency platform EmpiresX $130 million for defrauding investors. On February 4, the Commodity Futures Trading Commission (CFTC) announced that Emerson Pires, Flavio Goncalves, and Joshua Nicholas had been ordered to pay reparations and penalties for failing to respond to the case.

EmpiresX, an illicit investment site, falsely promised investors enormous profits. Instead of investing the cash as promised, the founders used investor funds to buy digital currencies, including Bitcoin, Ethereum, and Tether, while restricting withdrawals. The defendants also utilized the money for personal luxury items, such as vacations and shopping.

The court determined that Pires and Goncalves obtained at least $40 million from investors by promoting the platform through misleading means, including bogus websites and false claims of managing $85 million. Despite their claims, the platform was never registered with the necessary authorities, and investors were duped into investing in fraudulent earnings and trades that did not exist.

The CFTC obtained a default judgment after the defendants failed to respond to the action within the requisite timeframe. The court ordered Pires and Goncalves to pay a combined civil penalty of $96.5 million, with an extra $32.1 million in disgorgement, while Nicholas faced a separate penalty of $867,000.

In addition to the significant fines, the court barred the founders from trading on US financial markets. This case shows regulatory organizations’ continued efforts to combat fraud in the bitcoin business, advising investors to be cautious and watchful against deceptive investment schemes.

author avatar
Sagar Saini
A dedicated freelance blogger with a strong passion for finance and business, With a keen interest in the world of cryptocurrency.
Advertisement

You May Also Like

Cryptocurrency

Though European banks are unable to keep up with the demand, the crypto market is attracting more attention these days. Though consumer and business...

Cryptocurrency

In a significant turn for the cryptocurrency industry, the US Securities and Exchange Commission (SEC) is no longer moving forward with its inquiry into...

Cryptocurrency

A court has tentatively lifted the three-month ban on Upbit, the largest digital asset exchange in South Korea, marking a significant development for the...

Cryptocurrency

Amid the financial pressure on many companies to examine Bitcoin, it is estimated that a quarter of the S&P companies will have Bitcoin in...

polkadot
Polkadot (DOT) $ 4.00 2.46%
bitcoin
Bitcoin (BTC) $ 83,623.41 1.82%
ethereum
Ethereum (ETH) $ 1,814.17 3.64%
cardano
Cardano (ADA) $ 0.649062 4.94%
xrp
XRP (XRP) $ 2.04 3.80%
stellar
Stellar (XLM) $ 0.260174 2.74%
litecoin
Litecoin (LTC) $ 83.88 1.15%