Bogus Trading Bot Operator Guilty of $100M Fraud

EmpiresX claimed it operated a trading bot that guaranteed returns to investors and now founders are on the run

article-image

Source: Shutterstock

share
  • Chief Trader pleaded guilty to one count of conspiracy to commit securities fraud
  • Founders Emerson Pires and Glavio Goncalves have allegedly fled to their home country, Brazil

A Florida-based head trader of cryptocurrency platform EmpiresX pleaded guilty to an alleged Ponzi scheme that collected $100 million from investors.

28-year-old Joshua David Nicholas admitted to promoting a company-operated trading bot along with co-conspirators, claiming that it used artificial and human intelligence to maximize gains for investors, the Department of Justice (DOJ) said in a statement Thursday.

Joshua David Nicholas

Prosecutors allege that, instead of providing a profitable service, they rewarded earlier investors with money collected from later investors. EmpiresX also never registered its investment program as an offering with the Securities and Exchange Commission (SEC), nor did it have an exemption to do so, the DOJ said.

Nicholas pleaded guilty to one count of conspiracy to commit securities fraud. He faces a maximum penalty of five years in prison. 

The plea follows a June indictment, when DOJ officials charged Nicholas along with the founders of the firm, Emerson Pires and Flavio Goncalves, with conspiracy to commit wire fraud and securities fraud. The latter two were also charged with conspiracy to commit international money laundering.

On the same day as the DOJ’s indictment, the SEC also charged all three individuals over allegations of luring investors with false claims of 1% daily profits and misappropriating investor money for personal use.

Pires and Goncalves, both Brazilian nationals, have allegedly fled to their home country.

Emerson Pires and Flavio Goncalves

A sentencing date for Nicholas hasn’t yet been scheduled. Julie Holt, the public defender representing Nicholas, didn’t return Blockworks’ request for comment by press time.

The debate over which cryptocurrencies, and therefore which adjacent businesses, are considered securities currently shrouds the entire industry.

SEC Chair Gary Gensler said on Thursday that he would support a growing consensus that cryptocurrencies such as bitcoin — which he terms non-security tokens — to be handled by the Commodity Futures Trading Commission, rather than the SEC. Still, he said a majority of crypto tokens are securities that should come under his jurisdiction.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Unlocked by Template (1).jpg

Research

As AI supercharges surveillance, privacy becomes a prerequisite and the winning stack will combine confidentiality with selective disclosure. Zcash’s Tachyon, composable standards on Ethereum/Solana, and compliance-aware pools aim to make private rails the new norm.

article-image

Pipe’s testnet has delivered 60+ PB of data across ~290,000 Point of Presence (PoP) nodes

article-image

375ai will hold TGE at the end of the month, CEO Harry Dewhirst told Blockworks

article-image

Block’s subsidiary adds direct Bitcoin integration and AI-powered ordering tools for small businesses seeking streamlined transactions

by Blockworks /
article-image

The deal integrates Dinero’s staking suite into Plume’s real-world asset platform as it gains SEC transfer agent status

by Blockworks /
article-image

The state’s decision opens staking access to New Yorkers, signaling a regulatory shift toward broader crypto participation

by Blockworks /
article-image

The startup says it aims to rival Stripe and Worldpay by using stablecoins to speed merchant settlements from days to seconds

by Blockworks /