A US federal court has imposed over $130 million in penalties and restitution against the Brazilian founders of EmpiresX, a fraudulent cryptocurrency investment platform, as announced by the Commodity Futures Trading Commission (CFTC). Judge Cecilia Altonaga issued permanent injunctions and financial penalties against Emerson Pires, Flavio Goncalves, and associate Joshua Nicholas due to their failure to respond to the court's accusations in a timely manner. EmpiresX misled investors with promises of high returns, obtaining at least $40 million before misappropriating the funds for personal use, including luxury expenses. The court found the executives guilty of multiple violations, including fraud and failure to register with the CFTC. While Nicholas pleaded guilty to conspiracy to commit securities fraud, Pires and Goncalves fled to Brazil, complicating their extradition. Ultimately, the CFTC secured fines totaling $32.1 million for disgorgement and $96.5 million as civil monetary penalties, as well as a lifetime trading ban in US financial markets.

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