EmpiresX
A purported crypto hedge fund that promised ~1% daily returns from an 'EX BOT' trading robot. The SEC and DOJ called it a Ponzi scheme with ~$40M+ in investor losses; head trader Joshua David Nicholas pleaded guilty and was sentenced to 51 months.
Also known as: EmpiresX, Empires X, EX BOT
Summary
EmpiresX marketed itself as a crypto hedge fund that generated about 1% daily profits via a proprietary trading robot (the "EX BOT") and the skills of its "head trader." According to the SEC and DOJ, the bot was fake, the trading lost money, and EmpiresX operated as a Ponzi scheme — paying earlier investors with later investors' funds. [1][2]
Losses and misuse
The CFTC said EmpiresX took in about $40.6 million from roughly 12,500 investors. Operators diverted investor money to personal luxuries (a leased Lamborghini, Tiffany & Co. purchases, a home payment) and laundered funds through a foreign crypto exchange. [1][2]
Outcome
Head trader Joshua David Nicholas pleaded guilty to conspiracy to commit securities fraud and was sentenced to 51 months in prison plus $3,379,527 in restitution. Co-founders Emerson Sousa Pires and Flavio Mendes Goncalves were charged and, per the SEC, became fugitives. [1][2]
Bracketed numbers refer to the numbered sources listed below.
People & entities involved
Sources (2)
- SEC v. Joshua David Nicholas, et al. (EmpiresX) — litigation release — U.S. SEC
- EmpiresX Scammer Gets 51 Months For Crypto Ponzi Scheme — CoinMarketCap (DOJ release summary)
See also
- Bitcoin Latinum (LTNM)TokensA ~$16M token offering (SAFTs for 'Bitcoin Latinum' / LTNM) that the SEC charged in 2026 as fraud: founder Donald Basile falsely called LTNM 'the world's first insured digital asset' backed by an 'existing trust,' neither of which existed, and diverted investor funds for personal use (including a $160,000 horse).
- Loci (LOCIcoin)TokensA 2017–2018 ICO for 'LOCIcoin' tied to the InnVenn IP-search platform. The SEC charged Loci and CEO John Wise with fraud for raising $7.6M on false claims about revenue, headcount, and user base; Wise also misused investor funds. Settled with a $7.6M penalty and an officer/director bar.
- Blockchain Terminal (BCT)Tokens
This page was last updated on Jun 8, 2026. View revision history.