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Joshua Nicholas faces over $1.1 million in penalties for his role in the EmpiresX crypto scam while co-founders remain fugitives
In yet another cautionary tale from the world of cryptocurrency, a Stuart man has pleaded guilty to his role in a massive $100 million Ponzi scheme that duped investors across the globe. Joshua Nicholas, once promoted as a “genius” trader, was ordered to pay over $1.1 million and has been permanently banned from trading in U.S. financial markets.
EmpiresX Promised Big Returns but Delivered Big Losses
Nicholas, 30, was the head trader of EmpiresX, a cryptocurrency investment platform that turned out to be nothing more than an elaborate Ponzi scheme. Founded in 2020, EmpiresX operated in over 50 countries before collapsing by the end of 2021.
To lure in investors, Nicholas regularly hosted calls and in-person meetings, showcasing a so-called “EX BOT”—a trading system that supposedly guaranteed profitable returns in cryptocurrencies like Bitcoin and Ether. However, court records reveal that EmpiresX was never a legitimate investment firm. Instead, it functioned as a classic Ponzi scheme, using money from new investors to pay older ones, while its leaders pocketed millions for themselves.
Lavish Lifestyles Funded by Investor Money
Nicholas and the co-founders of EmpiresX, Emerson Pires and Flavio Goncalves, lived lavishly off the money they stole. Pires siphoned $1.5 million for personal luxuries like travel, housing, and high-end vehicles. Goncalves misused at least $520,000 on luxury hotels, expensive cars, jewelry, and payments to relatives.
Meanwhile, Nicholas was personally paid $289,000 for bringing in new investors—many of whom lost everything.
Authorities Crack Down but Co-Founders Remain on the Run
The FBI and Homeland Security launched an investigation, leading to Nicholas’s indictment in June 2022. He pleaded guilty to securities fraud later that year. In addition to his $867,000 civil penalty and $289,000 disgorgement, he has been permanently banned from trading in U.S. financial markets.
The co-founders, Pires and Goncalves, were also hit with over $128 million in penalties, but they failed to appear in court and are now fugitives.
Lessons Learned in the Crypto Investment World
The EmpiresX case serves as yet another warning about the dangers of crypto scams. While cryptocurrency can offer legitimate investment opportunities, schemes promising “guaranteed returns” should always raise red flags. Investors are encouraged to research trading platforms carefully, verify credentials, and be cautious of high-pressure sales tactics.
For those who lost money in the EmpiresX scam, justice may feel incomplete with the co-founders still at large. However, authorities continue their pursuit, and this case underscores the importance of transparency and accountability in the evolving crypto market.
As cryptocurrency continues to grow in popularity, one thing is clear—if an investment sounds too good to be true, it probably is.
