“Head Trader” of the EmpiresX cryptocurrency pyramid Joshua Nicholas pleaded guilty to conspiracy to commit securities fraud involving $100 million. The Минюст США said.
According to court documents, Nicholas and his accomplices marketed an investment scheme that allegedly guaranteed high returns through the use of a proprietary trading bot based on artificial and human intelligence.
In effect, early investors were paid out at the expense of new victims of the scam.
Promotion of the pyramid was active on Instagram.
“EmpiresX never registered its investment program as an offering and sale of securities with the SEC, and was exempt from registration,” the Justice Department said.
Nicholas faces up to five years in prison. A sentencing date has not yet been scheduled.
In August, a suit was filed in the U.S. District Court in Ohio against a local resident accused of organizing a financial pyramid with losses of more than $12 million in cash and Bitcoin.
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