EmpiresX, Prison 4 Y – The sentence has just been passed. Four years in prison for the mastermind behind the fraudulent EmpiresX platform. Its leader Crypto Ponzi swallowed more than $100 million justice has just allowed. All the details.
EmpiresX, the Ponzi that started
The so-called “entrepreneur” in the head of EmpiresXDavid Nicholas, sentenced to 51 months in prison at department of justice (DOJ) in the United States. Nicholas has pleaded guilty a few months ago for fraud. the mechanism of a Ponzi inevitably equal. That is to pay the first users the money of the new entrants. The problem arises when the influx of new “investors” is no longer able to maintain the pyramid of payments and when people suddenly start wanting to withdraw their money. The platform then failed, taking money from its customers.
These scams are unfortunately rampant, especially in a still young crypto world. on HashFlareon fake bitcoin minersuntil the suspicions that now weigh Celsiusthrough dishonour Mt Gox platform. Getting through the cracks of these scams can be difficult.
In the case of EmpiresX, defrauded investors were lured by a trading bot with outstanding performance. Nicholas confirms the “guaranteed” daily return through this bot that must be usedartificial intelligence (AI). But the latter turned out to be completely wrong. David Nicholas and his two partners, Emerson Pires and Flavio Goncalves, actually sent client funds to foreign crypto exchanges. So Nicholas was charged. On the other hand, his two companions, Pires and Goncalves, continue to run somewhere in Brazil, according to the investigation’s assumptions.
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Ponzi crypto, from the worse EmpiresX
According to CFTC (Commodity Futures Trading Commission), only $1 million of client funds were sent to futures trading accounts. But most of the money was lost or squandered. In June, the shake (Securities and Exchange Commission), the second US regulatory body, also launched charges against the three bandits. Customers’ money can actually be used to rent Lamborghinis, shop at Tiffany & Co., or even buy second homes… In short, anything but business.
For nearly two years, the EmpiresX platform has been operating. His clients were allowed to believe that he was regulated by the SEC and that Nicholas was a licensed and experienced trader. Until early 2022 when the luck begins. Seeing that the crypto market is weakening, investors start wanting to withdraw their money. But find themselves unable to do so, in the way of recent FTX drama. This was the beginning of the end for the collapsed Ponzi EmpiresX.
Hacks, scams, Ponzi, bankruptcy… In the darkest hours of bearmarket crypto let the bad news follow. However, it is also through these long periods of dormant markets that the most beautiful projects are built. Those who are able to bring to the market and show the full extent of their value proposition at the time of future phases of increase when they come back.
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