Head trader of alleged Ponzi scheme in US pleads guilty to securities fraud

Sept 18,2022
Head trader of alleged Ponzi scheme in US pleads guilty to securities fraud

Prosecutors of the U.S. Department of justice have obtained the surrender of a young man in California who was tested for complicity in securities fraud. Joshua David Nicholas, 28, dominates empirex, which the system claims gives investors "guaranteed returns."

The government indicated that the plan caused more than $100 million in damage to unsuspecting investors within two years of operation. The information obtained from the court documents shows that Nicholas and his co founders rented a Ferrari (Lamborghini), paid for the second house, and indulged some luxury brands for allegedly embezzling investors' funds.

Empirex claims that investors use the most advanced intelligent robots to carry out profitable trading transactions, supplemented by more professional human traders, and then get caught in fraud. Lured by the daily profit guarantee, more than 100 investors poured Nicholas' funds to pay other investors. According to the data survey report, there is no state-of-the-art Trading Robot, and very few transactions have led to significant losses.

In addition to the Ponzi scheme, the Ministry of justice also mentioned that empirex has never applied for registration and has not applied to the securities and Exchange Commission (SEC) for registration through the process. Nicholas may face nearly five years of federal captivity and will be sentenced later.

"This case should serve as a warning to those who attempt to illegally exploit the fuzziness of the crypto market to take advantage of poor individual investors," said Howard Salisbury, a special police detective at the homeland security administration.

Emerex founders Emerson Sousa Pires and Flavio Mendes Goncalves fled to Mexico to escape arrest. However, they were charged with complicity in international money laundering and telecom network fraud.

The American Stock Exchange Federation tried to control the indoor space

The main reason why US securities regulators have strengthened their supervision over the fledgling digital asset field is to protect investors, even outside the Ponzi scheme. To achieve this goal, the Federation led by Gamo Gensler declared that many digital assets are securities, and enterprises participating in its public offering must apply for registration in the Federation.

Although the goal of the SEC seems noble, insiders believe that the securities regulatory authority has implemented incorrect ideas. They listed the lack of information that actually indicated that companies should be registered and their arbitrary prosecution of unregistered companies.

Ripple Labs' long-term collapse of laws and regulations since 2020 and the threat of suing coinbase (NASDAQ Code: coin) for its proposed credit products are all examples of the European Commission trying to manipulate this field.

Care about coingeek's data encryption criminal cartel series products. This series deeply analyzes the group chat flow from bitmex to binance (BTC). COM, blockstream, shapeshift, coinbase, ripple, Ethereum, FTX and tether. They have participated in the digital asset reform, making this field a forbidden zone for innocent (even experienced) game players in the market.