Bitcoin News- Joshua David Nicholas was the “Head Trader” for EmpiresX as per DOJ.
- The exchange was a scam that stole digital assets worth $100 million.
Florida native Joshua David Nicholas pled guilty to defrauding investors of $100 million in digital assets via his participation in the cryptocurrency network EmpiresX. As a result, he might spend up to five years in Federal prison.
The US government apprehended a new Florida-based criminal gang last month. Three Miami residents, identified as Esteban Cabrera Da Corte, Luis Hernandez Gonzalez, and Asdrubal Ramirez Meza, face up to 30 years in prison for their roles in a $4 million bank and cryptocurrency scam.
AI and Human Intelligence to Increase Profits
The US Department of Justice (DOJ) has released a statement claiming that Joshua David Nicholas was the “Head Trader” for EmpiresX, a cryptocurrency exchange that promised “guaranteed” profits to users.
Still, the exchange was a scam that stole digital assets worth $100 million from unsuspecting investors. Nicholas and a few of his coworkers lied to customers throughout the company’s entire lifespan, saying that they used AI and human intelligence to increase profits.
Like other Ponzi schemes, EmpiresX never bothered to register with financial authorities or take any other precautions to ensure that the company could legally operate.
One count of conspiracy to conduct securities fraud was admitted to by the platform’s head. Since he has already acknowledged his offences, he faces a maximum of five years in a Federal penitentiary. The court will take into account the United States Sentencing Guidelines before making a final judgement, thus a sentencing date has not been set.
All users who believe they may have been victims of the scam were urged to report it on the US Department of Justice’s website. As a result, they will learn more about submitting an impact statement and being compensated.
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Source: https://thenewscrypto.com/u-s-doj-sentences-man-to-5-years-of-jail-for-crypto-scam/