Summary
- The U.S. CFTC announced that it has ordered the founders of EmpireX to pay fines and restitution exceeding $130 million.
- EmpireX was reported to have fraudulently obtained at least $40 million by promising high returns to investors.
- The CFTC stated that Pires and Goncalves misused these funds to purchase virtual assets and cover personal expenses.
The U.S. Commodity Futures Trading Commission (CFTC) announced that it has ordered the founders of the illegal Brazilian virtual asset (cryptocurrency) investment platform EmpireX to pay fines and restitution exceeding $130 million.
According to a report by Cointelegraph on the 6th (local time), the U.S. Florida Southern District Court has issued permanent injunctions, monetary penalties, and other measures against EmpireX founders Emerson Pires, Flavio Goncalves, and Joshua Nicholas.
Court documents reveal that Empire Consulting operated EmpireX, a fraudulent investment scheme that falsely promised high returns to investors. Pires and Goncalves are also accused of fraudulently obtaining at least $40 million from victims through false virtual asset advertisements.
The founders did not invest the funds as promised to investors, instead misusing them to purchase Bitcoin, Ethereum, Tether, and cover personal expenses such as travel.
The CFTC imposed a $32.1 million restitution and a $96.5 million civil penalty in response.
YM Lee
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