A former executive of German financial giant Deutsche Bank has been handed a 30-year prison sentence for his role in a crypto fraud scheme. In a new press release, the U.S. Department of Justice (DOJ) says that ex-investment banker and registered broker Rashawn Russell has pleaded guilty to charges of perpetrating a crypto fraud scheme […]
The post Former Deutsche Bank Executive Faces 30 Years in Prison for Crypto Fraud: DOJ appeared first on The Daily Hodl.
The Commodities Trading Futures Commission (CFTC) is hitting a South African Bitcoin (BTC) trading and networking firm with a ban and a $1.7 billion penalty for defrauding investors. In a new press release, the CFTC announces a judge has ruled that Mirror Trading International Proprietary Limited (MTI) must pay over a billion dollars to compensate […]
The post US Regulator Slaps Trading Firm With $1,700,000,000+ Penalty for Defrauding Thousands of 29,420 Bitcoin appeared first on The Daily Hodl.
New court documents reveal that authorities have seized assets and a house from Alex Mashinksy, the former chief executive of bankrupt crypto lending company Celsius. According to an unsealed court order, several bank accounts and a Texas home belonging to Mashinksy have been seized as the Department of Justice (DOJ) continues its criminal case against […]
The post US Court Seizes Alex Mashinsky’s Bank Accounts and Texas House: Unsealed Order appeared first on The Daily Hodl.
A Nevada man is facing time behind bars for his alleged role in the multi-million-dollar CoinDeal investment scheme. According to a new press release, the U.S. Department of Justice (DOJ) is charging 57-year-old Bryan Lee for his alleged participation in defrauding 10,000 investors out of $45 million and misappropriating their funds. The DOJ says that […]
The post Nevada Man Faces Decades in Prison After Feds Charge Him in Alleged $45,000,000 Crypto Scheme appeared first on The Daily Hodl.
Embattled Terra (LUNA) founder Do Kwon is reportedly having his bail conditions appealed by Montenegrin prosecutors. According to a new document released by Montenegrin authorities, an appeal has been filed by the State Prosecutor’s Office against the decision to let Kwon and his associate Han Chang-joon pay 400,000 euros ($435,000) to be let out on […]
The post Terra (LUNA) Creator Do Kwon’s Bail Conditions Appealed by Prosecutors: Report appeared first on The Daily Hodl.
A hacker once in possession of 50,000 Bitcoin (BTC) stolen from the internet marketplace Silk Road is being sentenced to federal prison. In a new press release, the U.S. Department of Justice (DOJ) says that James Zhong has been sentenced to one year and one day in prison for stealing about 50,000 BTC from Silk […]
The post Silk Road Hacker Who Once Held Over $3,000,000,000 in BTC Sentenced to Prison by Feds 11 Years Later appeared first on The Daily Hodl.
Roughly 11 days ago, it was reported that Nishad Singh, the former director of engineering at FTX, was working with federal prosecutors to arrange a plea deal. On Tuesday, Singh pleaded guilty to criminal charges and stated, “I am unbelievably sorry for my role in all of this.” Singh Cooperating With Authorities in FTX Investigation; […]
A Solana-based (SOL) decentralized crypto exchange is suing the bad actor behind the alleged $100 million exploit of its network last October. In a new court filing in the Southern District of New York, Mango Markets accuses Avraham Eisenberg of initiating a “brazen and malicious” attack on its platform. The exchange claims Eisenberg manipulated the […]
The post Solana-Based Trading Platform Mango Markets Sues Crypto Trader Behind $100,000,000 Exploit appeared first on The Daily Hodl.
Authorities in Italy and Albania have hit a fraud scheme enticing victims with promises of low-risk investments in cryptocurrencies. During an operation coordinated by Eurojust, investigators from the two countries searched a dozen locations and seized assets and computer equipment. Fraudsters Contacted Investors From a Call Center in Tirana, Albania Law enforcement officers in Italy […]
Two other associates that helped run the U.S.-based fraudulent crypto platform EmpiresX left the country early this year and are believed to be in Brazil.
One of the leading figures convicted of being behind the $100 million crypto “Ponzi” scheme, EmpiresX, has just been handed an over four-year jail sentence by a United States court.
The sentencing was handed to Joshua David Nicholas, the “head trader” of purported crypto platform EmpiresX, who is nowset to serve a 51-month prison sentence along with three years of supervised release for his role in the fraudulent scheme.
It follows a Sept. 8 guilty plea from Nicholas for conspiracy to commit securities fraud.
According to the Department of Justice (DOJ), over a two-year period, Nicholas made claims the platform would make daily “guaranteed” returns using a trading bot that utilized “artificial and human intelligence” to maximize returns.
In reality, the “bot” was fake, and Nicolas and his associates, Emerson Pires and Flavio Goncalves, operated a "Ponzi" scheme that paid earlier investors with money from later investors. The DOJ alleges blockchain analytics shows Pires and Goncalves, both Brazilian nationals, laundered investors’ funds through a “foreign-based” crypto exchange.
Only around $1 million of investor funds were sent to a futures trading account for EmpiresX with the majority of funds either lost or misappropriated according to the Commodity Futures Trading Commission (CFTC) which filed civil actions against the three in June.
At the same time, fraud charges were leveled against the trio by the Securities and Exchange Commission (SEC) which said investor money was used to “lease a Lamborghini, shop at Tiffany & Co., make a payment on a second home, and more.”
Related: HashFlare founders arrested in ‘astounding’ $575M crypto fraud scheme
Investors were also told EmpiresX was registered with the SEC as a hedge fund and that Nicholas was a licensed trader.
The SEC said the platform was never registered with the Commission and Nicholas’ was suspended from trading by the National Futures Association for misappropriating customer funds.
The scheme ran for two years, from around September 2020 until early 2022 when it fell apart as the platform refused to honor customer withdrawals who were likely wanting to leave the crypto market due to significant price drawdowns that began at the time.
Pires and Goncalves, who were residing in Florida, allegedly began winding down the operations of EmpiresX in early 2022 and left the U.S., they are now believed to be in Brazil.
