EmpiresX ($40 Million)
On June 30, the Securities and Exchange Commission announced charges against a company called Empires Consulting Corp., or EmpiresX. According to the government, this company claimed to have a crypto trading bot that would bring in “one percent daily profits” to investors. But officials say that the crypto bot was actually fake and, instead of make large amounts of money for investors, the people behind EmpiresX allegedly misappropriated large amounts of their funds, using the money to lease a Lamborghini and make a payment on a second home, among other things. As the scheme collapsed, federal officials say that the EmpiresX founders halted investors’ withdrawals and relocated to Brazil. However, the company’s head trader, pled guilty to conspiracy to commit securities fraud in connection to the scheme.
