United States DOJ Charges Mining Capital Coin CEO for Apparently Running a $62M Crypto Fraud
< img src =" https://cryptopotato.com/wp-content/uploads/2020/09/us-doj-wire-act-online-gaming-900x540-min.jpg" class=" ff-og-image-inserted" > The United States Department of Justice (DOJ) has actually indicted Luiz Capuci Jr., the CEO and co-founder of Mining Capital Coin (MCC), for allegedly running a $62 million fraud plan.
Mining Capital Coin CEO Allegedly Misled Financiers
According to the DOJ, Capuci and other unnamed members of his group had actually misguided investors into believing that MCC’s mining and investment program had huge profit-bearing capacity.
Capuci claimed the firm has a global network of large-scale mining machines that might generate enormous revenues and guaranteed returns if financiers’ acquired the so-called “Mining Bundles.”
The investment would allegedly be utilized to mine a brand-new cryptocurrency, MCC’s native token called “Capital Coin.” Capuci claimed the token was backed by the “most significant cryptocurrency mining operation in the world.” He, however, failed on these guarantees and rather turned to utilizing the funds raised by financiers to money personal crypto wallets under his control.
The DOJ said: “As declared in the indictment, however, Capuci ran a deceitful investment scheme and did not utilize investors’ funds to mine the brand-new cryptocurrency, as promised, however instead diverted the funds to cryptocurrency wallets under his control.”
Running MLM Scheme
In addition to deceitful mining bundles and token sales, Capuci supposedly marketed dubious MCC trading bots to unsuspecting investors. He declared that these bots utilized “brand-new technology never seen before” to conduct thousands of trades and yield huge returns daily.
The Justice Department further declared that Capuci operated MCC as a multi-level marketing (MLM) plan, hiring affiliates and promoters to draw other investors. They were assured a wide variety of rewards, from “Apple watches and iPads to high-end lorries such as a Lamborghini, Porsche, and even Capuci’s personal Ferrari.”
Approximately 45 Years in Prison
Capuci is currently charged with conspiracy to devote wire scams, conspiracy to dedicate securities scams, and conspiracy to commit worldwide money laundering. If found guilty of all these charges, Capuci faces an optimum penalty of 45 years in prison.
Discussing the current indictment, Anthony Salisbury, Special Representative in Charge for HSI Miami, stated, “This case must serve as a warning to any individuals who look to illegally capitalize on the viewed ambiguity of the emerging crypto market to take benefit of innocent investors.”
Meanwhile, this is not the very first time the US Justice Department has arraigned an establishing member of a deceptive crypto scheme. Last month, CryptoPotato reported that the DOJ charged the owner of Block Bits Fund for deceptive financiers into devoting nearly $1 million to a phony arbitrage autotrader.
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Published at Mon, 09 May 2022 22:59:55 +0000