EmpiresX Founders Ordered to Pay $130 Million for Crypto Fraud

The founders of crypto investment platform EmpiresX have received a heavy monetary penalty of $130 million from a U.S. federal court.

The Brazilian founders of the platform were said to have run EmpiresX with promises of high returns. However, both founders, Emerson Pires and Flavio Goncalves, failed to invest the client’s funds but instead channeled them for other purposes. EmpiresX reportedly received over $40 million in investments.

CFTC Issues $128 Million Ruling Against EmpiresX Founders

The Commodity Futures Trading Commission (CFTC) announced the ruling on February 5. The ruling is part of the United States’ efforts to keep crypto platforms accountable and transparent.

CFTC Enforcement Director Brian Young remarked that the EmpiresX founders undermined investor trust and harmed the financial markets. The case was first filed in June 2022. However, the defendants failed to respond, leading to a default judgment.

CFTC fines EmpiresX founders $130M in crypto fraud case

A US federal court ordered more than $130 million in penalties and restitution against the Brazilian founders of EmpiresX, an illegal cryptocurrency investment platform, the Commodity Futures Trading Commission (CFTC)… pic.twitter.com/1tNNZUryGw

— MetaEra (@MetaEraHK) February 6, 2025

Judge Cecilia Altonaga of the U.S. District Court for the Southern District of Florida delivered the verdict and issued permanent injunctions, fines, and a lifetime trading ban against the founders. Furthermore, judge Altonaga ordered Pires and Goncalves to pay $32.1 million in disgorgement and a $96.5 million civil monetary penalty.

Growing Scrutiny on Crypto Crimes

Authorities worldwide are increasing efforts to tackle financial fraud in the crypto space. Blockchain analytics firm Chainalysis reported that crypto criminals stole over $2 billion in 2024 alone.

Plus, high-profile figures in the industry are facing prosecution, including former Binance CEO Changpeng Zhao, who served four months in jail, and FTX founder Sam Bankman-Fried, sentenced to 25 years. Celsius Network’s Alex Mashinsky is also facing legal action.

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