Joshua David Nicholas faced a $300,026 judgment in the Securities and Exchange Commission's civil case against EmpiresX, an order approved on April 19th. This judgment covers disgorgement of illicit gains and prejudgment interest related to the cryptocurrency Ponzi scheme.

The court order details $289,000 in disgorgement, representing Nicholas's net profits from the fraudulent operation. An additional $11,026 was assessed for prejudgment interest. This civil penalty is not a separate payment to the SEC. Instead, it is considered satisfied by the criminal restitution order issued last month, which holds Nicholas accountable for $3.3 million owed directly to victims. By the time that criminal order was finalized, Nicholas had already made payments totaling $312,246, an amount that covers the civil judgment.

EmpiresX operated as a sprawling $100 million Ponzi scheme, according to Department of Justice findings. The fraud relied on a deceptive promise of automated trading bots that would generate high, consistent returns for investors. Nicholas played a central role, presenting himself as "Joshua Greg," the platform's supposed "Master Trader." He acted as a public face for the operation, lending a false sense of legitimacy to the sophisticated scam. Investors were lured by the prospect of passive income through a complex, opaque system. The funds, however, were not traded by bots but instead funneled to earlier investors and co-conspirators.

Last November, Nicholas received a sentence of 51 months in federal prison for his involvement in the scheme. He is currently incarcerated, serving his time alongside the ongoing restitution obligations. The criminal and civil actions against him illustrate the dual approach federal authorities take in prosecuting financial fraud.

The SEC continues its pursuit of the remaining alleged co-founders. Entries of Default were secured against Emerson Pires and Flavio Goncalves on April 20th. This legal step occurs when a defendant fails to respond to a lawsuit. The regulator now has until May 4th to file motions for default judgment against them, seeking to hold them accountable for their roles.

Pires and Goncalves faced parallel criminal charges, indicted in July 2022. Once federal investigators began closing in, both men fled the United States for Brazil. They remain wanted fugitives, outside U.S. jurisdiction, leaving victims without direct recourse for their financial losses from these two individuals. Their continued evasion contrasts sharply with Nicholas's incarceration and his efforts to repay victims.

The EmpiresX case underscores the persistent risks within the unregulated corners of the cryptocurrency market. Victims of similar cryptocurrency fraud schemes can report incidents to the SEC's Enforcement Division or the FBI's Internet Crime Complaint Center (IC3).