Civil lawsuits filed by the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) against EmpiresX and its principals have been put on hold. Judge Altonaga issued administrative stays on September 19th and 28th, waiting for formal service of process on Emerson Pires and Flavio Goncalves.

Pires and Goncalves, who operated EmpiresX, are also facing criminal charges. They reportedly fled to Brazil after learning they were targets of an investigation. Both agencies have initiated international service procedures for Pires and Goncalves through the Hague Convention. This method, while legally sound, is known for its lengthy timeline.

The court acknowledged that Hague Convention service can take a minimum of six to eight months, or potentially longer. The stay was granted to allow for the "orderly progress of the case(s)." The CFTC must submit status reports on service every 60 days, starting October 7th. The SEC has a similar reporting requirement beginning October 28th. The cases will be reinstated to the active docket only after all defendants are served and a party files a motion with the court. Once service is completed on all defendants, they will have a set period to file a combined or separate response. Empires Consulting Corp and Joshua Nicholas, co-defendants in the civil actions, have already been served.

As of February 7th, the CFTC reported that the Brazilian Central Authority had been unable to serve Emerson Pires at the address on file. No update has been received concerning service attempts on Flavio Goncalves. The CFTC anticipates seeking court permission for alternative service methods, such as service by publication, if attempts through the Brazilian Central Authority fail. This development is not unexpected, given that Pires and Goncalves are considered fugitives. Service via publication is likely to be pursued by mid-year if communication from the Brazilian authorities remains stalled. The SEC docket shows no new activity regarding service on these defendants.

The SEC indicated in a February 27th status report that it plans to file a motion for alternative service for Pires and Goncalves. This follows indications that Brazilian authorities have been unsuccessful in serving the defendants via the Hague Convention. If the SEC confirms that Hague Convention service is unlikely to succeed, it will move forward with its request for alternative service.