Mining Capital Coin CEO Indicted In $62 Million Crypto Fraud Scheme:
Mining Capital Coin CEO and founder Luiz Capuci Jr. was indicted for allegedly a $62 million global investment crypto fraud scheme through his several Crypto currency mining and investment platform who have been recently charged by the U.S. Department of Justice on Friday (May 6).
Crypto currency based fraud is undermining financial markets around the world as bad actors defraud investors and limit the ability of legitimate entrepreneurs to innovate in this emerging space, said by the Assistant Attorney General Kenneth A. Polite and Jr. of the Criminal Division of the Department of Justice.
The department is committed to following money whether digital or physical and to expose criminal schemes. Instead of this, it hold all these fraudsters accountable and protect investors.
According to the indictment, Capuci Jr.,44, of Port St. Lucie, Florida, the CEO and founder of MCC ,misled investors about the company’s Crypto currency mining and investment program, under which investors could invest in MCC by purchasing Mining Packages.
MCC’s purported international network of crypto currency mining machines as being able to generate substantial profits and guaranteed returns by using investors money to mine new Crypto currencies was touted by Capuci and his co-conspirators, according to the DOJ press release.Capuci also promoted MCC’S crypto currency , capital coin, as a decentralised autonomous organisation that was stabilised by revenue from the biggest crypto currency mining operation in the world.In the charged, Capuci is also accused of operating a fraudulent investment scheme and diverting investors money to crypto currency wallets under his control.
Another MCC product known as ‘Trading Bots operated under the same false pretenses.He also allegedly fraudulently marketed for Trading Bots as another investment method for crypto currency investors. According to Capuci , his MCC collaborated with top software developers from Russia Asia and the U.S. to innovate an improved version of Trading Bots that was tested with new technology.Further Capuci stated that the MCC Trading Bots operate at a very high frequency,being capable of performing thousands of transactions per second and so each of the MCC Trading Bots will generate daily returns for investors. He promised to generate revenues for investors using his Trading Bots Scheme but fraudulently diverted the investors funds to himself and his co-conspirators.
Capuci also charged recruited promoters to promote MCC and it’s various investment programs via a multi-level marketing scheme, referred to as a Pyramid Scheme. For its success they enticing investors to invest.He also alleged with conspiracy to commit wire fraud, securities fraud and conspiracy to commit international money laundering.
Currently the FBI’s Miami field Office is investigating the case.Capuci never registered his company with the SEC. So the agency today issued a fraud alert for the company.According to press release , Capuci and his co-conspirators successfully enticed 65,535 investors to purchase his crypto currency mining packages on international level and promised to daily returns of 1%, and paid weekly for over a year.He could spend up to 45 years behind the prison if convicted of all counts.