The organizer of the cryptocurrency pyramid EmpiresX pleaded guilty to fraud

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Joshua David Nicholas, the creator of the cryptocurrency platform EmpiresX, which defrauded investors of about $100 million, pleaded guilty to one of the charges.

According to a statement on the Ministry's websiteUS Justice, Florida resident Joshua David Nicholas called himself the “chief trader” of the EmpiresX platform. His accomplices Emerson Pires and Flavio Goncalves told investors that the site uses the latest trading bot with artificial intelligence (AI), and promised a daily profit of 1% of the invested funds. 

In July, the US Attorney's Office filed chargesNicholas and his accomplices. The Ministry of Justice claims that in addition to defrauding investors, they were engaged in unregistered sales of securities and money laundering through cryptocurrencies. Nicholas admitted that he fraudulently promoted EmpiresX by misleading investors about “guaranteed” returns and a trading bot that did not exist. Money received from late investors went to people who managed to enter the cryptocurrency scheme earlier than others. 

Moreover, despite statements aboutregistration with regulatory authorities, EmpiresX never filed a complaint with the U.S. Securities and Exchange Commission (SEC) regarding this matter. Given that Nicholas pleaded guilty to one count, he faces a maximum penalty of five years in prison. A sentencing date has not yet been set.

“Technology has changed, but crimeremains the same, it’s just that now scammers are engaged in illegal activities in the field of cryptocurrencies. This case should serve as a warning to anyone who seeks to illegally benefit from the trust of investors,” added Homeland Security Special Agent in Charge Anthony Salisbury.

Earlier, the US Department of Justice addressed regulators around the world, urging them to tighten oversight of compliance with anti-money laundering (AML) rules and Know Your Customer (KYC) procedures.