The founders of the investment platform EmpiresX have been fined $130 million by a U.S. federal court. These sanctions come as a result of fraudulent activities involving client investments.
The Case Against EmpiresX Founders
The Brazilian founders of EmpiresX, Emerson Pires and Flavio Goncalves, promised high returns but instead diverted client funds for other purposes. The platform received over $40 million in investments.
CFTC Ruling and Court Measures
The Commodity Futures Trading Commission (CFTC) announced the ruling on February 5. Judge Cecilia Altonaga of the Southern District of Florida issued permanent injunctions, fines, and a lifetime trading ban against the founders. Pires and Goncalves must pay $32.1 million in disgorgement and a $96.5 million civil monetary penalty.
Increased Scrutiny on Crypto Crimes
Authorities worldwide are intensifying efforts to combat financial fraud in the crypto space. Blockchain analytics firm Chainalysis reported that crypto criminals stole over $2 billion in 2024. High-profile figures in the industry, such as former Binance CEO Changpeng Zhao and FTX founder Sam Bankman-Fried, are also facing legal actions.
The court's ruling against the EmpiresX founders highlights the serious approach to combating financial crimes in the crypto industry and the drive to ensure transparency and integrity in the market.
