CEO Of Mining Capital Coin Indicted For Crypto Fraud
Mining Capital Coin CEO Luiz Capuci Jr. was indicted by the Justice Department on Friday for reportedly coordinating a $62 million international investment fraudulent activity.
Luiz Capuci Jr., the chief executive and founder of Mining Capital Coin (MCC), allegedly lied to investors about the company’s crypto mining capabilities and the function of its proprietary token, all while stealing $62 million from them and depositing it in crypto wallets controlled by him, according to a statement released by the department.
Capuci offered to use investor monies to mine new cryptocurrency, but instead moved funds to his own wallets. He is also accused of deceptively marketing MCC’s Trading Bots, claiming that they could execute hundreds of deals per second and profit investors.
Capuci marketed mining contracts to far more than 65,000 investors since January 2018, according to a complaint filed by the US Securities and Exchange Commission last month. Per the SEC press release, the group offered 1% daily data for up to a year.
Capuci allegedly moved the monies to his own bitcoin wallets, according to the DOJ. According to the complaint, MCC received nearly $8.1 million in mining package sales plus $3.2 million in entrance charges, which were used to fund a luxury lifestyle that included Lamborghinis, a yacht, and real estate.
Capuci allegedly ran a pyramid scam, guaranteeing presents to a network of promoters who successfully recruited new investors, according to the indictment. iPads, Apple Watches, and sometimes even Capuci’s own personal Ferrari were reportedly among the prizes up for grabs. If acquitted of all charges, Capuci may face a maximum sentence of 45 years imprisonment. Wire fraud, insider trading, and global money launder are among the charges leveled against him.
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