Cryptocurrency platform EmpiresX has been convicted over a $100 million cryptocurrency “Ponzi” scheme and has been given a four-year jail sentence by a United States court, as reported by Cointelegraph.
According to Cointelegraph, the sentence was handed to “head trader” Joshua David Nicholas, who is expected to serve a 51-month prison sentence along with three years for his involvement in the fraud. It was done post a September 8, 2022, guilty plea from Nicholas for conspiracy to commit securities fraud.
On the basis of information by Cointelegraph, insights provided by the Department of Justice (DOJ), over a two-year period, stated on Nicholas making claims on the platform making daily “guaranteed” returns through a trading bot that makes use of “artificial and human intelligence” for maximising returns. It is believed that approximately one million dollars worth of investor funds were sent to a futures trading account for EmpiresX with the maximum amount of being either lost or misappropriated, according to the Commodity Futures Trading Commission (CFTC) which filed civil actions against the three involved in June, 2022. Reportedly, fraud charges were levelled against the three by the Securities and Exchange Commission (SEC) which stated about investor money’s usage to “lease a Lamborghini, shop at Tiffany & Co, make a payment on a second home, and more.”
Moreover, Cointelegraph noted that investors were also informed about EmpiresX being…
