💹 CFTC fined the creators of EmpiresX $130 million for cryptocurrency fraud
A U.S. federal court sentenced the founders of the cryptocurrency platform EmpiresX, Brazilians Emerson Pires and Flavio Goncalves, to pay over $130 million for their involvement in a fraudulent scheme.
The ruling was made on February 4, 2025, by Judge Cecelia Altonaga of the Southern District of Florida. This came after the defendants did not respond to the charges brought against them.
EmpiresX attracted investors with false promises of high returns, raising at least $40 million, according to U.S. authorities. Instead of real investments, the funds were used to purchase cryptocurrencies, for personal expenses, and to display fictitious profits. Investigators managed to recover about $22.8 million in digital assets.
The founders are ordered to provide restitution of $32.1 million and a civil penalty of $96.5 million. Nicolas is also mandated to pay $289,000 in compensation and a $867,000 fine. The court has banned all three from participating in trading on U.S. financial markets.
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