EmpiresX: CFTC reports default judgments against three defendants
The 2025 civil orders describe a fake brokerage website, commingled funds and monetary sanctions.
- Cited claims
- 2
- Source records
- 2
- Edition revision
- 2
In this investigation
Later civil findings
On 4 February 2025, the CFTC reported default judgments against Emerson Pires, Flavio Goncalves and Joshua Nicholas. Pires and Goncalves were jointly and severally ordered to pay more than $32 million in disgorgement and $96 million in penalties; Nicholas faced separate amounts. The order found that a displayed brokerage account was fabricated and that the business had no account with the named trading platform. These findings go beyond the earlier report of Nicholas's guilty plea.
The recorded plea
DOJ announced on 8 September 2022 that Joshua David Nicholas, described as EmpiresX's head trader, pleaded guilty to conspiracy to commit securities fraud. The announcement said the cryptocurrency-based scheme took in approximately $100 million. That amount describes funds taken in, not a verified amount ultimately recovered for investors.
The advertised technology
According to the plea record, Nicholas admitted misrepresentations involving a proprietary bot and guaranteed returns. Promoters said artificial and human intelligence were used to maximise profits. DOJ described payments to earlier investors funded with money from later participants instead of the business model represented in the pitch.
Registration was another claim
The record also states that, despite representations to the contrary, the investment programme was not registered with the SEC and had no valid exemption from the relevant requirement. This US case-specific statement should not be treated as a universal registration rule for all cryptocurrency software. The archive preserves what the plea announcement established at its date.
Sources, dates and limits
Checked 23 October 2026. The CFTC's 2025 order concerns commodity-pool conduct and a different monetary scope from the DOJ's earlier scheme-wide account. Those amounts are not added together as independent losses; a default judgment is labelled as such.
Evidence & sources
- Adjudicated finding
Joshua David Nicholas pleaded guilty in September 2022 to conspiracy to commit securities fraud, admitting misrepresentations about the EmpiresX trading bot and guaranteed returns.
Supporting excerpt: EmpiresX Head Trader Pleads Guilty to Global Cryptocurrency Investment Fraud Scheme that Amassed Approximately $100 Million from Investors
pleaded guilty today to conspiracy to commit securities fraud
EmpiresX Head Trader Pleads Guilty to Global Cryptocurrency Investment Fraud Scheme that Amassed Approximately $100 Million from Investors ↗ - Adjudicated finding
On 4 February 2025, the CFTC reported default judgments against Emerson Pires, Flavio Goncalves and Joshua Nicholas. Pires and Goncalves were jointly and severally ordered to pay more than $32 million in disgorgement and $96 million in penalties; Nicholas faced separate amounts. The order found that a displayed brokerage account was fabricated and that the business had no account with the named trading platform. These findings go beyond the earlier report of Nicholas's guilty plea.
Supporting excerpt: Florida Court Orders Brazilian Nationals to Pay Over $128 Million for Fraudulent Commodity Pool Scheme | CFTC
issued an order of default judgment
Florida Court Orders Brazilian Nationals to Pay Over $128 Million for Fraudulent Commodity Pool Scheme | CFTC ↗
