Partner of Brazilians who dock with cryptocurrencies in the US pleads guilty

Partner of Brazilians who dock with cryptocurrencies in the US pleads guilty

A partner of two Brazilians accused of running a multimillion-dollar cryptocurrency scam in the United States (US) pleaded guilty in court, alleging that it was all fraud against investors.

The scheme in question already had repercussions in Brazil, including where EmpireX arrived with false investment offers.

The company operated with the promise of certain gains of 30% per month, which is surreal for a highly volatile market like cryptocurrencies. Guaranteed profits are proposals that can only be found in financial pyramid schemes and this company just confessed to being another one.

Partner of Brazilians who dock with cryptocurrencies in the US pleads guilty

This Thursday (8), a Florida man who was the head of commerce at EmpireX pleaded guilty in a US court.

“A Florida man today pleaded guilty to conspiracy to commit securities fraud in connection with a global cryptocurrency-based Ponzi scheme that has raised approximately $100 million from investors.”

Since early July 2022, he and two other Brazilians have been accused of setting up a fraudulent company that left a trail of losses for investors worth $100 million, about $520 million at the current dollar rate.

In addition to pleading guilty to the crimes, Joshua David Nicholas, 28, confessed that his partners were his accomplices in the crime, these two Brazilians identified as Emerson Pires and Flávio Gonçalves, both 33 years old.

To attract investors, they claimed to have a state-of-the-art cryptocurrency trading robot, which even had artificial intelligence. However, the FBI investigated and concluded that it was all a cover for the real deal, a scheme to pay first movers with the arrival of new investors.

Confession risks 5 years in prison

For pleading guilty to securities fraud and aiding the investigations that identified the two Brazilians as part of the plan, Joshua David Nicholas could face 5 years in prison.

He now hopes to get a sentence soon from a federal judge hearing the case. In addition to the FBI, the Miami HSI also cooperated in the investigations.

Still, things could get worse as US justice seeks new victims of the EmpireX scheme to file complaints, which could affect the outcome of the case.

“All investors who are victims of the EmpiresX scheme are encouraged to visit the webpage https://www.justice.gov/criminal-vns/crypto-enforcement to identify themselves as potential victims and obtain more information about their rights as victims, including the ability to submit a victim statement.”

Source: Live Coins

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