EmpiresX Ponzi Scheme - Revision history

Azoundria at 23:04, 10 May 2024

2024-05-10T23:04:05Z

← Older revision		Revision as of 17:04, 10 May 2024
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	This exchange or platform is based in United States, or the incident targeted people primarily in United States.		This exchange or platform is based in United States, or the incident targeted people primarily in United States.
	<ref name="decrypt-10253" /><ref name="bloomberg-10303" /><ref name="coingeek-10305" /><ref name="justicedepartment-10306" /><ref name="empirexcapital-10365" /><ref name="empirexcapital-10366" /><ref name="sec-10367" /><ref name="justicedepartment-10368" /><ref name="dropbox-10369" /><ref name="tbbob-10370" /><ref name="empiresxarchive-10371" /><ref name="empiresxarchive-10372" /><ref name="empiresxarchive-10373" /><ref name="empiresxarchive-10374" /><ref name="youtube-10375" /><ref name="youtube-10376" />		<ref name="decrypt-10253" /><ref name="bloomberg-10303" /><ref name="coingeek-10305" /><ref name="justicedepartment-10306" /><ref name="empirexcapital-10365" /><ref name="empirexcapital-10366" /><ref name="sec-10367" /><ref name="justicedepartment-10368" /><ref name="dropbox-10369" /><ref name="tbbob-10370" /><ref name="empiresxarchive-10371" /><ref name="empiresxarchive-10372" /><ref name="empiresxarchive-10373" /><ref name="empiresxarchive-10374" /><ref name="youtube-10375" /><ref name="youtube-10376" /><ref name="comparitech-10032" />

	== About EmpiresX ==		== About EmpiresX ==
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	\|<ref name="moskowitzlaw-10377" />		\|<ref name="moskowitzlaw-10377" />
	\|}		\|}

			== Technical Details ==
			This section includes specific detailed technical analysis of any security breaches which happened. What specific software vulnerabilities contributed to the problem and how were they exploited?

	== Total Amount Lost ==		== Total Amount Lost ==
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	<ref name="moskowitzlaw-10377">[https://moskowitz-law.com/empiresx-crypto-ponzi-scheme EmpiresX Crypto Ponzi Scheme — The Moskowitz Law Firm] (Jan 20, 2023)</ref>		<ref name="moskowitzlaw-10377">[https://moskowitz-law.com/empiresx-crypto-ponzi-scheme EmpiresX Crypto Ponzi Scheme — The Moskowitz Law Firm] (Jan 20, 2023)</ref>
	<ref name="cryptonews-10378">[https://cryptonews.com/news/florida-crypto-scam-trader-of-empiresx-pleads-guilty-of-defrauding-investors-of-100m.htm Florida Crypto Scam Trader of EmpiresX Pleads Guilty of Defrauding Investors of $100m - CryptoNews] (Jan 20, 2023)</ref>		<ref name="cryptonews-10378">[https://cryptonews.com/news/florida-crypto-scam-trader-of-empiresx-pleads-guilty-of-defrauding-investors-of-100m.htm Florida Crypto Scam Trader of EmpiresX Pleads Guilty of Defrauding Investors of $100m - CryptoNews] (Jan 20, 2023)</ref>
			<ref name="comparitech-10032">[https://www.comparitech.com/crypto/cryptocurrency-scams/ Worldwide crypto & NFT rug pulls and scams tracker - Comparitech] (Dec 15, 2022)</ref>
	</references>		</references>

Azoundria: Another 30 minutes complete. Additional sources merged in. Information moved around.

2023-11-28T22:05:47Z

Another 30 minutes complete. Additional sources merged in. Information moved around.

← Older revision		Revision as of 16:05, 28 November 2023
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	"Why should [I] choose Empires X? Because it is simple, it is profitable, it is real and it is for you! It is very easy and simple to purchase our services. We are present in more than 16 countries, operating close to you. At EmpiresX, everyone can invest safely and profitably."		"Why should [I] choose Empires X? Because it is simple, it is profitable, it is real and it is for you! It is very easy and simple to purchase our services. We are present in more than 16 countries, operating close to you. At EmpiresX, everyone can invest safely and profitably."

	"EMPIRESX CORP is a corporation that was incorporated in the state of Florida on January 30, 2020, with a principal place of business at 9700 Casa Linda Court, Fort Myers, Florida 33919. EMPIRES X CORP is a citizen and resident of the State of Florida.		"Emerson S. Piresis an individual resident of the City of Fort Myers, located within Lee County, Florida. Pires is the founder and President of EMPIRES X CORP, and the President of Empires Consulting Corp and EMPX MANAGEMENT LLC." "Flavio M. Goncalves is an individual resident of the City of Fort Myers, located within Lee County, Florida. Pires is the co-founder of EMPIRES X CORP, and the Vice-President of Empires Consulting Corp and of EMPX MANAGEMENT LLC." "Joshua David
	EMPIRES X CORP filed for dissolution on September 19, 2020." "EMPIRES CONSULTING CORP. is a corporation that was incorporated in the state of Florida on October 14, 2020, with a principal place of business at 9700 Casa Linda Court, Fort Myers, Florida 33919. Empires Consulting Group is a citizen and resident of the State of Florida."

	"EMPX MANAGEMENT LLC is a corporation that was incorporated in the state of Florida on June 9, 2021, with a principal place of business at 1855 SE Port Saint Lucie Blvd, Port Saint Lucie, Florida 34952. EMPX MANAGEMENT LLC is a citizen and resident of the State of Florida." "Emerson S. Piresis an individual resident of the City of Fort Myers, located within Lee County, Florida. Pires is the founder and President of EMPIRES X CORP, and the President of Empires Consulting Corp and EMPX MANAGEMENT LLC." "Flavio M. Goncalves is an individual resident of the City of Fort Myers, located within Lee County, Florida. Pires is the co-founder of EMPIRES X CORP, and the Vice-President of Empires Consulting Corp and of EMPX MANAGEMENT LLC." "Joshua David
	Nicholas is an individual resident of the City of Stuart, located within Martin County, Florida."		Nicholas is an individual resident of the City of Stuart, located within Martin County, Florida."

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	EmpiresX "reassured investors that Gregg was registered with the Securities and Exchange Commission (SEC) and even included his broker page and credentials on EMPIRES-X’s corporate documents for members to review to impart an indicia of validity and credibility to their false claims."		EmpiresX "reassured investors that Gregg was registered with the Securities and Exchange Commission (SEC) and even included his broker page and credentials on EMPIRES-X’s corporate documents for members to review to impart an indicia of validity and credibility to their false claims."

	"To imbue EMPIRES-X with legitimacy, EMPIRES-X DEFENDANTS ~~falsely~~ represented to EMPIRES-X investors that the transactions on the EMPIRES-X PLATFORM were regulated by not only the SEC, but also the Commodity Futures Trading Commission (CFTC), the		"To imbue EMPIRES-X with legitimacy, EMPIRES-X DEFENDANTS represented to EMPIRES-X investors that the transactions on the EMPIRES-X PLATFORM were regulated by not only the SEC, but also the Commodity Futures Trading Commission (CFTC), the
	Federal Reserve, and other regulatory organizations like the Financial Industry Regulatory Authority (FINRA)."		Federal Reserve, and other regulatory organizations like the Financial Industry Regulatory Authority (FINRA)."

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	"The EMPIRES-X DEFENDANTS represented that signing up to use the EMPIRES-X Platform and investing with the “Bot” was easy. After registering, the user was locked into a 12-month contract with EMPIRES-X." "Investors first had to “purchase” or “rent” the Bot by making an initial investment (usually in the amount of $400 to be able to receive up to 1% ROI per day, or alternatively, in the amount of $200 to be able to receive up to 0.6% ROI per day). Then, investors had to deposit funds (no less than $500) for the Bot to use for conducting trades. In addition to these, investors were required to periodically deposit additional funds to purchase “credits,” which would cover the “Bot fee” (essentially, an administration fee), which was 20% of the investor’s daily profit. Investors had the option to make the payments either in USDT (USD Tether), BTC (Bitcoin), or ETH (Ether)."		"The EMPIRES-X DEFENDANTS represented that signing up to use the EMPIRES-X Platform and investing with the “Bot” was easy. After registering, the user was locked into a 12-month contract with EMPIRES-X." "Investors first had to “purchase” or “rent” the Bot by making an initial investment (usually in the amount of $400 to be able to receive up to 1% ROI per day, or alternatively, in the amount of $200 to be able to receive up to 0.6% ROI per day). Then, investors had to deposit funds (no less than $500) for the Bot to use for conducting trades. In addition to these, investors were required to periodically deposit additional funds to purchase “credits,” which would cover the “Bot fee” (essentially, an administration fee), which was 20% of the investor’s daily profit. Investors had the option to make the payments either in USDT (USD Tether), BTC (Bitcoin), or ETH (Ether)."

	"Payments from investors went directly to EMPIRES-X’s and/or EMPIRES-X or Non-defendants’ COINBASE account(s). The company provided users with the information to the designated wallet(s), including those maintained by COINBASE." "A video demonstrating how to purportedly transfer funds to the EMPIRES-X PLATFORM reveals that investors were actually asked to simply transfer their funds into a COINBASE account owned and/or controlled by EMPIRES-X DEFENDANTS."

	"Investors were told that profits made from trading with the Bot would be paid weekly, on Mondays. Investors were also reassured by EMPIRES-X DEFENDANTS that they could liquidate their investment at any time (with the exception of a 20% “penalty” fee that applied for withdrawals done within the first month). To make a request for withdrawal, investors submitted a withdrawal request on the EMPIRES-X PLATFORM’S “back office” (where investors managed their accounts), which, when approved by the company, would transfer the requested amount into their crypto wallets. The withdrawals would be processed weekly, on Fridays, and landed in the designated account the following Tuesday. But, instead of withdrawing, investors were encouraged to “compound” their investment to “make thousands turn into millions in a matter of months!”"		"Investors were told that profits made from trading with the Bot would be paid weekly, on Mondays. Investors were also reassured by EMPIRES-X DEFENDANTS that they could liquidate their investment at any time (with the exception of a 20% “penalty” fee that applied for withdrawals done within the first month). To make a request for withdrawal, investors submitted a withdrawal request on the EMPIRES-X PLATFORM’S “back office” (where investors managed their accounts), which, when approved by the company, would transfer the requested amount into their crypto wallets. The withdrawals would be processed weekly, on Fridays, and landed in the designated account the following Tuesday. But, instead of withdrawing, investors were encouraged to “compound” their investment to “make thousands turn into millions in a matter of months!”"
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	== The Reality ==		== The Reality ==
			"Payments from investors went directly to EMPIRES-X’s and/or EMPIRES-X or Non-defendants’ COINBASE account(s). The company provided users with the information to the designated wallet(s), including those maintained by COINBASE." "A video demonstrating how to purportedly transfer funds to the EMPIRES-X PLATFORM reveals that investors were actually asked to simply transfer their funds into a COINBASE account owned and/or controlled by EMPIRES-X DEFENDANTS."

	"In reality, the “Bot” was a lie. There was never any algorithm using artificial intelligence to conduct trades on behalf of		"In reality, the “Bot” was a lie. There was never any algorithm using artificial intelligence to conduct trades on behalf of
	EMPIRES-X investors. Upon information and belief, no trading activity ever actually occurred for the benefit of the		EMPIRES-X investors. Upon information and belief, no trading activity ever actually occurred for the benefit of the
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	!Event		!Event
	!Description		!Description
			\|-
			\|January 30th, 2020
			\|EmpiresX Incorporated
			\|"EMPIRESX CORP is a corporation that was incorporated in the state of Florida on January 30, 2020, with a principal place of business at 9700 Casa Linda Court, Fort Myers, Florida 33919. EMPIRES X CORP is a citizen and resident of the State of Florida."
			\|-
			\|September 19, 2020
			\|EmpiresX Dissolved
			\|"EMPIRES X CORP filed for dissolution on September 19, 2020."
			\|-
			\|October 14, 2020
			\|Empires Consulting Incorporated
			\|"EMPIRES CONSULTING CORP. is a corporation that was incorporated in the state of Florida on October 14, 2020, with a principal place of business at 9700 Casa Linda Court, Fort Myers, Florida 33919. Empires Consulting Group is a citizen and resident of the State of Florida."
			\|-
			\|June 9, 2021
			\|EmpX Management LLC Incorporated
			\|"EMPX MANAGEMENT LLC is a corporation that was incorporated in the state of Florida on June 9, 2021, with a principal place of business at 1855 SE Port Saint Lucie Blvd, Port Saint Lucie, Florida 34952. EMPX MANAGEMENT LLC is a citizen and resident of the State of Florida."
	\|-		\|-
	\|November 2nd, 2021 6:21:07 AM MDT		\|November 2nd, 2021 6:21:07 AM MDT

Azoundria: Another 30 minutes complete. Prevention added and much more research.

2023-07-17T19:40:06Z

Another 30 minutes complete. Prevention added and much more research.

Show changes

Azoundria at 20:34, 2 March 2023

2023-03-02T20:34:34Z

← Older revision		Revision as of 14:34, 2 March 2023
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	!Description		!Description
	\|-		\|-
	\|January 28th, 2022 ~~12:00:00 AM MST~~		\|January 28th, 2022
	\|Main Event		\|Main Event
	\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.		\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.

Azoundria at 20:32, 2 March 2023

2023-03-02T20:32:38Z

← Older revision		Revision as of 14:32, 2 March 2023
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	!Description		!Description
	\|-		\|-
	\|January 28th, 2022 12:00:00 AM		\|January 28th, 2022 12:00:00 AM MST
	\|Main Event		\|Main Event
	\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.		\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.

Azoundria at 19:38, 2 March 2023

2023-03-02T19:38:38Z

← Older revision		Revision as of 13:38, 2 March 2023
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	What parts of this case are still remaining to be concluded?		What parts of this case are still remaining to be concluded?

	== Prevention Policies ==		== General Prevention Policies ==
	A key challenge is that investment registration requirements are typically expensive and infeasible for most smaller organizations. As a result, many prominent blockchain projects have been founded without completing any registration process. At the same time, present registered services give limited visibility into the backing of funds, so consumers do not expect this. Note how EmpiresX is able to talk about transparency in a way that's similar to leading regulated platforms, and there's nothing distinctively different as far as consumers are concerned. They produced documentation that mimics registration type document, and consumers can't tell what's real, which could only be fixed with greater education.		A key challenge is that investment registration requirements are typically expensive and infeasible for most smaller organizations. As a result, many prominent blockchain projects have been founded without completing any registration process. At the same time, present registered services give limited visibility into the backing of funds, so consumers do not expect this. Note how EmpiresX is able to talk about transparency in a way that's similar to leading regulated platforms, and there's nothing distinctively different as far as consumers are concerned. They produced documentation that mimics registration type document, and consumers can't tell what's real, which could only be fixed with greater education.

	The easiest way to uncover a ponzi is to determine that the assets do not cover the liabilities which are owed to investors. This can be done easily through a rotation of third party validators. For crypto-only projects, a Proof of Reserves algorithm may also form a useful alternative, or a multi-sig treasury with keys held by trustworthy individuals could be visible on a well-audited smart contract.		The easiest way to uncover a ponzi is to determine that the assets do not cover the liabilities which are owed to investors. This can be done easily through a rotation of third party validators. For crypto-only projects, a Proof of Reserves algorithm may also form a useful alternative, or a multi-sig treasury with keys held by trustworthy individuals could be visible on a well-audited smart contract.

	=== Individual Prevention Policies ===		== Individual Prevention Policies ==
	{{Prevention:Individuals:Placeholder}}		{{Prevention:Individuals:Placeholder}}

	{{Prevention:Individuals:End}}		{{Prevention:Individuals:End}}

	=== Platform Prevention Policies ===		== Platform Prevention Policies ==
	{{Prevention:Platforms:Placeholder}}		{{Prevention:Platforms:Placeholder}}

	{{Prevention:Platforms:End}}		{{Prevention:Platforms:End}}

	=== Regulatory Prevention Policies ===		== Regulatory Prevention Policies ==
	{{Prevention:Regulators:Placeholder}}		{{Prevention:Regulators:Placeholder}}

Azoundria: /* General Prevention Policies */ Testing out the look.

2023-03-02T19:38:20Z

General Prevention Policies: Testing out the look.

← Older revision		Revision as of 13:38, 2 March 2023
Line 160:		Line 160:
	What parts of this case are still remaining to be concluded?		What parts of this case are still remaining to be concluded?

	== ~~General~~ Prevention Policies ==		== Prevention Policies ==
	A key challenge is that investment registration requirements are typically expensive and infeasible for most smaller organizations. As a result, many prominent blockchain projects have been founded without completing any registration process. At the same time, present registered services give limited visibility into the backing of funds, so consumers do not expect this. Note how EmpiresX is able to talk about transparency in a way that's similar to leading regulated platforms, and there's nothing distinctively different as far as consumers are concerned. They produced documentation that mimics registration type document, and consumers can't tell what's real, which could only be fixed with greater education.		A key challenge is that investment registration requirements are typically expensive and infeasible for most smaller organizations. As a result, many prominent blockchain projects have been founded without completing any registration process. At the same time, present registered services give limited visibility into the backing of funds, so consumers do not expect this. Note how EmpiresX is able to talk about transparency in a way that's similar to leading regulated platforms, and there's nothing distinctively different as far as consumers are concerned. They produced documentation that mimics registration type document, and consumers can't tell what's real, which could only be fixed with greater education.

	The easiest way to uncover a ponzi is to determine that the assets do not cover the liabilities which are owed to investors. This can be done easily through a rotation of third party validators. For crypto-only projects, a Proof of Reserves algorithm may also form a useful alternative, or a multi-sig treasury with keys held by trustworthy individuals could be visible on a well-audited smart contract.		The easiest way to uncover a ponzi is to determine that the assets do not cover the liabilities which are owed to investors. This can be done easily through a rotation of third party validators. For crypto-only projects, a Proof of Reserves algorithm may also form a useful alternative, or a multi-sig treasury with keys held by trustworthy individuals could be visible on a well-audited smart contract.

	== Individual Prevention Policies ==		=== Individual Prevention Policies ===
	{{Prevention:Individuals:Placeholder}}		{{Prevention:Individuals:Placeholder}}

	{{Prevention:Individuals:End}}		{{Prevention:Individuals:End}}

	== Platform Prevention Policies ==		=== Platform Prevention Policies ===
	{{Prevention:Platforms:Placeholder}}		{{Prevention:Platforms:Placeholder}}

	{{Prevention:Platforms:End}}		{{Prevention:Platforms:End}}

	== Regulatory Prevention Policies ==		=== Regulatory Prevention Policies ===
	{{Prevention:Regulators:Placeholder}}		{{Prevention:Regulators:Placeholder}}

Azoundria at 19:29, 2 March 2023

2023-03-02T19:29:33Z

← Older revision		Revision as of 13:29, 2 March 2023
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	{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/empiresxponzischeme.php}}		{{Imported Case Study 2\|source=https://www.quadrigainitiative.com/casestudy/empiresxponzischeme.php}}
	{{Unattributed Sources}}		{{Unattributed Sources}}

Azoundria at 19:28, 2 March 2023

2023-03-02T19:28:37Z

← Older revision		Revision as of 13:28, 2 March 2023
Line 1:		Line 1:
	{{Imported Case Study 2\|source=https://www.quadrigainitiative.com/casestudy/empiresxponzischeme.php}}		{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/empiresxponzischeme.php}}
	{{Unattributed Sources}}		{{Unattributed Sources}}

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	== Ongoing Developments ==		== Ongoing Developments ==
	What parts of this case are still remaining to be concluded?		What parts of this case are still remaining to be concluded?

			== General Prevention Policies ==
			A key challenge is that investment registration requirements are typically expensive and infeasible for most smaller organizations. As a result, many prominent blockchain projects have been founded without completing any registration process. At the same time, present registered services give limited visibility into the backing of funds, so consumers do not expect this. Note how EmpiresX is able to talk about transparency in a way that's similar to leading regulated platforms, and there's nothing distinctively different as far as consumers are concerned. They produced documentation that mimics registration type document, and consumers can't tell what's real, which could only be fixed with greater education.

			The easiest way to uncover a ponzi is to determine that the assets do not cover the liabilities which are owed to investors. This can be done easily through a rotation of third party validators. For crypto-only projects, a Proof of Reserves algorithm may also form a useful alternative, or a multi-sig treasury with keys held by trustworthy individuals could be visible on a well-audited smart contract.

	== Individual Prevention Policies ==		== Individual Prevention Policies ==
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	== Platform Prevention Policies ==		== Platform Prevention Policies ==
	A key challenge is that investment registration requirements are typically expensive and infeasible for most smaller organizations. As a result, many prominent blockchain projects have been founded without completing any registration process. At the same time, present registered services give limited visibility into the backing of funds, so consumers do not expect this. Note how EmpiresX is able to talk about transparency in a way that's similar to leading regulated platforms, and there's nothing distinctively different as far as consumers are concerned. They produced documentation that mimics registration type document, and consumers can't tell what's real, which could only be fixed with greater education.		{{Prevention:Platforms:Placeholder}}

	The easiest way to uncover a ponzi is to determine that the assets do not cover the liabilities which are owed to investors. This can be done easily through a rotation of third party validators. For crypto-only projects, a Proof of Reserves algorithm may also form a useful alternative, or a multi-sig treasury with keys held by trustworthy individuals could be visible on a well-audited smart contract.

	{{Prevention:Platforms:End}}		{{Prevention:Platforms:End}}

Azoundria at 19:24, 2 March 2023

2023-03-02T19:24:17Z

← Older revision		Revision as of 13:24, 2 March 2023
Line 161:		Line 161:

	== Individual Prevention Policies ==		== Individual Prevention Policies ==
	A key challenge is that investment registration requirements are typically expensive and infeasible for most smaller organizations. As a result, many prominent blockchain projects have been founded without completing any registration process. At the same time, present registered services give limited visibility into the backing of funds, so consumers do not expect this. Note how EmpiresX is able to talk about transparency in a way that's similar to leading regulated platforms, and there's nothing distinctively different as far as consumers are concerned. They produced documentation that mimics registration type document, and consumers can't tell what's real, which could only be fixed with greater education.		{{Prevention:Individuals:Placeholder}}

	The easiest way to uncover a ponzi is to determine that the assets do not cover the liabilities which are owed to investors. This can be done easily through a rotation of third party validators. For crypto-only projects, a Proof of Reserves algorithm may also form a useful alternative, or a multi-sig treasury with keys held by trustworthy individuals could be visible on a well-audited smart contract.

	{{Prevention:Individuals:End}}		{{Prevention:Individuals:End}}

	== Platform Prevention Policies ==		== Platform Prevention Policies ==
	~~{{Prevention:Platforms:Placeholder}}~~		A key challenge is that investment registration requirements are typically expensive and infeasible for most smaller organizations. As a result, many prominent blockchain projects have been founded without completing any registration process. At the same time, present registered services give limited visibility into the backing of funds, so consumers do not expect this. Note how EmpiresX is able to talk about transparency in a way that's similar to leading regulated platforms, and there's nothing distinctively different as far as consumers are concerned. They produced documentation that mimics registration type document, and consumers can't tell what's real, which could only be fixed with greater education.

			The easiest way to uncover a ponzi is to determine that the assets do not cover the liabilities which are owed to investors. This can be done easily through a rotation of third party validators. For crypto-only projects, a Proof of Reserves algorithm may also form a useful alternative, or a multi-sig treasury with keys held by trustworthy individuals could be visible on a well-audited smart contract.

	{{Prevention:Platforms:End}}		{{Prevention:Platforms:End}}