Joshua David Nicholas, a Florida resident, pleaded guilty to the charges that he and others from the cryptocurrency platform EmpiresX stole $100 million in digital assets from investors. He faces a maximum five-year Federal prison sentence.
Another criminal group from Florida was brought to justice by the US authorities last month. Asdrubal Ramirez Mesa, Luis Hernandez Gonzalez, Esteban Cabrera da Corte and Luis Hernandez Gonzalez are all Miami citizens who were accused of defrauding banks, a cryptocurrency platform, and other financial institutions for more than $4million. They could spend as much as 30 years in prison.
The Multi-Million Crypto Ponzi Scheme
A statement from the US Department of Justice states that Joshua David Nicholas was the Head Trader for EmpiresX. EmpiresX is a cryptocurrency platform that promises “guaranteed returns” to investors.
The trading platform was fraudulent and robbed investors of $100 million in digital assets. Nicholas and his associates lied to customers over the years that the company used artificial and human intelligence to maximize profits.
EmpiresX was a Ponzi scheme that operated in a similar fashion to other Ponzi schemes. It was not registered with financial regulators and did not even take steps to obtain the licenses.
One count of conspiracy to commit securities Fraud was pleaded guilty by the leader of the platform. He admitted to his crimes and will serve a maximum of five years in Federal Prison. The judge will review the US Sentencing Guidelines before setting a sentencing date.
All affected users were encouraged to go to the US Department of Justice’s official website and identify themselves as victims of the scam. They will be able to get information about how to receive reimbursements and make an impact statement.
Florida has not another similar case
The American authorities indicted three Miami residents – Da Corte and Gonzalez – with stealing more than $4 million from banks and a crypto exchange.
The criminals purchased digital assets from the trading platform using fake initials. They complained to financial institutions about the fact that the transactions were not authorized and asked for a refund.
Fraudulent reversals led to more than $4,000,000 being taken from banks while the unidentified cryptocurrency platform lost $3.5 million in digital assets.
Homeland Security Investigations (HSI), however, discovered the fraud and organized the men’s arrest. They now face a maximum sentence of 30 years in prison.
CryptoPotato’s first article, Florida Man Faces Five Year Prison for Stealing $100M worth of Crypto appeared on CryptoPotato.
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