Withdrawals were restricted by EmpiresX in early October. Withdrawals were then disabled fully in mid-October and have stayed that way ever since. Emerson Pires and Flavio Goncalves, co-founders of EmpiresX, threatened legal action against victims and senior promoters in a mid-December corporate update.

Pires and Goncalves also cited a slew of unverifiable withdrawal justifications rather than simply admitting their Ponzi scheme ran out of money. The audio recording “Update From The Founders Of The Company” is EmpiresX’s December 15th update.

Pires and Goncalves have appeared on video in prior EmpiresX upgrades. Pires and Goncalves read from a script in the audio recording. It’s uncertain whether the two are in the same place. Pires and Goncalves discuss EmpiresX’s continuous withdrawal concerns in addition to threatening to sue investors. I’ve split the verbatim citing of issues discussed in the update below to make things easy.

Legal threats have been made. Pires: “The corporation is now compelled to spend time and resources to defend itself after things were said and filed against it. Despite the fact that EmpiresX acted in good faith throughout, charges and claims were made against it. The charges and accusations, according to EmpiresX, are false and untrue, and (are) made with malice in mind. As a result, in order to safeguard everyone, the corporation is pursuing legal action against anyone who want to damage others or make false statements about the company, which is considered defamation. Because the only people who would complain about EmpiresX are unsatisfied investors, this is interpreted as a threat to the affiliate community. We’ll come after you if you don’t shut up.”

Pires: “In a similar vein to our previous comment regarding misuse, EmpiresX has discovered that certain individuals were receiving cash from sources in their network, promising a return on their investment, and then preparing to deliver a lower return than EmpiresX would. This breaches a number of rules and regulations, and the firm is aware of the perpetrators and is pursuing legal action against them. Fraudsters prey on other scammers. You despise seeing it. For the record, I’m not aware of EmpiresX naming any “actors” or bringing legal action against them. Withdrawal Delays in EmpiresX.”

Pires: To better serve you, we’ve made investments to diversify into new markets, which reduces risk. Precious stones, precious metals, and real estate are among the new markets. Partnerships with professionals in Brazil, Namibia, Angola, Dubai, and Portugal were developed to accomplish these deals. Because of these new collaborations, there is a global reach that lowers risks and expands opportunities. It required a lot of time and networking to build these ties. As a result, there have been no updates.”

This is the first time I’ve heard of EmpiresX claiming to be involved in anything other than bot trading. Pires’ claims of “additional revenue” have been refuted by no evidence. In addition, due to the novel and unique nature of digital currency transactions, the company relied on manual processes, which caused delays in meeting expectations. As a result, EmpiresX enlisted the help of seasoned individuals who breached contract restrictions, acted deliberately, and distributed operational trade secrets in order to expedite operations. This ultimately harmed the company, and some of it resulted in extra harm.

Goncalves: “One of the injuries was the exposure of the new IT company, which resulted in a torrent of phone calls to the new IT development firm, which they regarded as harassment. It is vital to maintain secrecy before, during, and after the construction of a new system to prevent the company from malice and the client database from being distorted. This contract breach resulted in non-performance, which resulted in more complications and delays.”

It’s unclear whether Goncalves is referring to his Tecnologia2u Brazilian development firm or another one. There has been no evidence produced to back up Goncalves IT firm assertions.

Goncalves: “The Coinbase payment platform was also a hindrance. To be clear, Coinbase Commerce is a separate platform from Coinbase and is used for receiving and transmitting payments. Following the Coinbase outage, the bitcoin network became unavailable, and it remains thus to this day. Due to a Coinbase blockchain problem that is producing a network unavailability issue, crypto money have become untransferable [sic].

All other cryptocurrencies, such as ethereum and USDT, are accessible through the same platform. And the bitcoin network is the only one affected by this problem. Regrettably, the majority of the company’s payments were paid in bitcoin. And because of this problem, the company has been unable to convert to other cryptos, withdraw funds, or process payments. According to Coinbase’s incident database, no bitcoin issues were reported in December. Withdrawals from EmpiresX have been blocked since mid-October.

Pires: “The organization is experiencing distractions from its main business due to unforeseen obstacles. Nonetheless, the organization is taking all reasonable steps to guarantee that payments are made. EmpiresX will not give up on resolving these issues. EmpiresX withdrawals are still disabled as of January 7th. Flavio Goncalves and Emerson Pires are missing. EmpiresX investor accounts are being closed. EmpiresX is canceling account(s) when the capital received was restored by Goncalves.”

Over the next few weeks, EmpiresX will close all accounts that have requested a capital withdrawal for the third time or have broken company policy. Goncalves twists three basic phrases in an attempt to seem like a lawyer: “EmpiresX is involuntarily closing any affiliate investor account that has received more money than they invested;”

EmpiresX is involuntarily closing any affiliate investor account that has made three withdrawals; and EmpiresX is involuntarily closing additional affiliate investor accounts for violating company policy. SEC Regulations (???)

Goncalves: “Exchanges or valid received for access to EmpiresX’s business activities will be restored above any withdraws and liquidation values, according to SEC rules. Simply put, whatever capital was delivered to EmpiresX will or may have previously provided a transaction, returning the capital to the source from which it was acquired. I can confidently confirm that EmpiresX does not have any “SEC restrictions” that prevent it from processing withdrawals.”

EmpiresX is a Ponzi scheme that has already been found in violation of US securities laws. Pseudo-compliance is when a company refuses to process withdrawals under the premise of not wanting to commit any more securities violations.

Goncalves: “In addition, the company has met (or almost met) its net capital requirements.”

Goncalves comes to a halt there, as if he believes he’s made his point. I’m not sure what that point is (or even what he’s saying). Looking Ahead… Despite the fact that withdrawals have been restricted for three months, EmpiresX’s website traffic continues to climb.

On December 1st, we released our most recent EmpiresX update. Australia (22 percent), South Africa (19 percent), and the United States were the top EmpiresX website traffic sources at the time, according to Alexa (15 percent ). Recruitment appears to have stopped in those countries. Tanzania is presently strongly promoting EmpiresX. (66 percent ). South Africa has decreased to 16 percent, while Vietnam has taken over 6 percent from the United States.

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