4 Years in Prison for a Leader of the $100m Ponzi Scam ‘EmpiresX’


Joshua Nichols, the alleged ‘head trader’ for EmpiresX, has been sentenced to 51 months in prison following his guilty plea on September 8th.

Nichols and his co-conspirators, who have now fled from Florida to Brazil, created the EmpiresX ‘cryptocurrency platform’ in 2020. EmpiresX touted ‘daily profits of one percent earned by a trading “bot” or Nicholas’ manual trading’.

This was actually just another Ponzi scheme. The ‘trading bot’ was completely fraudulent. The scheme worked by luring investors with the promise of daily profits, and early investors were in fact paid with the deposits of later investors. The scheme continued until withdrawals could no longer be completed, and the pyramid collapsed.

The defendants did transfer $1 million into a brokerage account and lost some money through bad trades. However, they also “misappropriated large sums of investors’ money to lease a Lamborghini, shop at Tiffany & Co., make a payment on a second home, and more” according to the SEC.

The Commodity Futures Trading Commission (CFTC) claims that over $41.6 million was accepted from investors by EmpiresX. However, the United States Department of Justice states that approximately $100 million was amassed from investors.

EmpiresX gained investor confidence with a series of fake claims. They claimed that EmpiresX was registered with the SEC as a hedge fund and that Nichols himself was a licensed trader – omitting the fact that he actually was suspended by the National Futures Association from trading because he misappropriated customer funds earlier in his career.

Carolyn Welshhans, Acting Chief of the SEC Enforcement Division of Crypto Assets, said in a summary:

“The defendants allegedly engaged in an unregistered offering with a slew of fraudulent statements designed to lure investors with the prospect of seedy daily profits. The SEC’s investigation has uncovered the steps the defendant took to conceal their alleged fraud, and today’s action serves to protect investors by bringing that misconduct to light.”



Source link: https://dailycoin.com/4-years-in-prison-for-a-leader-of-the-100m-ponzi-scam-empiresx/

Sponsors

spot_img

Latest

Jose Mourinho throws Europa League runners-up medal to young fan as Sevilla end Roma manager’s perfect record

Jose Mourinho gave away his Europa League runners-up medal as Sevilla ended the Roma manager's perfect record in European finals. Mourinho was bidding to...

Iga Swiatek joins Serena Williams on exclusive milestone list

© Getty Images Sport - Paul Kane Iga Swiatek has joined Serena Williams in a very notable milestone list as the Pole is...

Will Dogecoin Dip To Local Support As Coin Trades Sideways?

Dogecoin started losing value as soon as it fell outside its ascending parallel channel. At the moment, Dogecoin is trading laterally. Over the...

Base Chain First Week Rundown: Adoption, Exploits, and Rugpulls

Coinbase released Base to the public exactly one week ago today. In its first week, the...

Iran complain to FIFA about USA removing Islamic Republic symbol from flag in social media posts but Americans say decision made to support women...

The Iranian Football Federation has complained to FIFA after the United States removed the Islamic Republic symbol from the Iran flag in social media posts. Ahead the meeting between both...