Brazilian is investigated by the FBI for millionaire pyramid scheme with cryptocurrencies – Money Times

The SEC also accused those involved of fraud with cryptocurrencies. (Image: Freepik)

The jury of the Federal Court of the Southern District of Florida indicted the Brazilian Emerson Pires, 33, for participating in a pyramid scheme with cryptocurrencieswhich would have moved $100 million.

Brazilian Flávio Gonçalves, 33, and American Joshua David Nicholas, 28, were also indicted yesterday (30) by the jury.

The case is being investigated by the United States Federal Bureau of Investigation (FBI), second The globe.

The document says that Brazilians founded a crypto investment platform, called EmpiresX, and the American acted as the company’s “head trader”.

The country’s Securities and Exchange Commission (SEC, the US CVM) also accused the three involved of fraud. The regulator pointed out that EmpiresX promised 1% daily profit to investors.

Promise of guaranteed returns on cryptocurrencies

According to a note from the Department of Justice (DOJ) of USA, those involved “misled investors about, among other things, an alleged trading ‘bot’ that, according to the trio, could generate guaranteed returns for investors in EmpiresX”. However, according to the SEC, the bot never existed.

The US Department of Justice classified the trio’s scheme as a Ponzi Scheme, in which investors’ money was laundered through cryptocurrencies abroad. Early investors were paid with money from new investors.

For George L. Piro, FBI agent, while technology has changed, pyramid scheme crime remains the same.

“What is changing is that fraudsters are now pushing their criminal activities into the realm of cryptocurrencies” said Pyro.

In May of this year, Emerson Pires was indicted by the DOJ for participating in another similar scheme with cryptocurrencieswhich would have moved US$ 62 million.

*With information from The Globe

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