Mining Capital Coin CEO accused of $62M investment fraud scheme

chief executive officer and co-founder of crypto mine and investing platform Mining Capital Coin ( MCC ) Luiz Capuci has been indicted by the United States Department of Justice ( DOJ ) for “ allegedly orchestrating a $ 62 million global investment fraud schema. ” The DOJ is charging Capuci with conspiracy to commit wire fraud, conspiracy to commit securities fraud and conspiracy to commit international money launder in relative to respective allegedly deceitful schemes that were run via MCC. If found guilty, he faces a utmost prison prison term of 45 years. According to the DOJ ’ randomness indictment, Capuci, aboard nameless co-conspirators, is accused of misleading investors over the profit-bearing likely of MCC mining packages and a native token dubbed Capital Coin that was backed by the “ biggest cryptocurrency mine operation in the worldly concern. ” As separate of the mine packages, Capuci is said to have touted “ significant profits and guaranteed returns by using investors ’ money to mine fresh cryptocurrency ” but allegedly failed to deliver on the bargain :

“As alleged in the indictment, however, Capuci operated a fraudulent investment scheme and did not use investors’ funds to mine new cryptocurrency, as promised, but instead diverted the funds to cryptocurrency wallets under his control.”

Capuci is besides accused of marketing doubtful MCC trade bots “ with modern technology never seen before ” that could conduct “ thousands of trades per second “ and generate daily returns for investors. “ As he did with the Mining Packages, however, Capuci allegedly operated an investing imposter dodge with the trading Bots and was not, as he promised, using MCC Trading Bots to generate income for investors, but rather was diverting the funds to himself and co-conspirators, ” the DOJ indictment reads. additionally, the MCC CEO and co-founder allegedly recruited MCC promoters and affiliates as part of a multilevel commercialize system. In return for luring investors into the MCC ecosystem, Capuci is said to have promised anything from “ Apple watches and iPads to luxury vehicles such as a Lamborghini, Porsche ” and even his own personal Ferrari .

“Capuci further concealed the location and control of the fraud proceeds obtained from investors by laundering the funds internationally through various foreign-based cryptocurrency exchanges.”

The DOJ ’ s indictment was besides announced on the lapp day that the U.S. Securities and Exchange Commission ( SEC ) outlined imposter charges against MCC, co-founder Emerson Pires, Capuci and two entities controlled by Capuci in CPTLCoin Corp. and Bitchain Exchanges.

According to the SEC ’ s charge, “ MCC, Capuci, and Pires sold mining packages to 65,535 investors cosmopolitan and promised day by day returns of 1 percentage, paid hebdomadally ” over the course of a year. The SEC alleged that investors were initially promised returns in Bitcoin ( BTC ). however, this was subsequently changed to MCC ’ s Capital Coin, which could merely be redeemed on “ a forge crypto asset trade platform Capuci created and managed ” called Bitchain. however, when it came time for users to withdraw their funds, they were only able to purchase another mining package or forfeit their funds. Related: New crypto litigation tracker highlights 300 cases from SafeMoon to Pepe the Frog

The SEC alleges that Pires and Capuci “ netted at least $ 8.1 million from the sale of the mine packages and $ 3.2 million in knowledgeability fees. ” “ As the complaint alleges, Capuci and Pires took every opportunity to extract more money from unsuspecting investors on delusive promises of bizarre returns and used investor funds raised from this deceitful scheme to fund a lavish life style, including purchasing Lamborghinis, yachts, and real number estate, ” said A. Kristina Littman, foreman of the SEC enforcement division ’ mho Crypto Assets and Cyber Unit. The SEC besides stated that the District Court for the Southern District of Florida issued a temp restrain ordering against the defendants end calendar month and an holy order to freeze their assets .

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