The US Department of Justice (DOJ) announces indictments against the CEO of a crypto mining company for allegedly running a global investment fraud scheme.
According to a statement released by the DOJ, Luiz Capuci Jr., the chief executive and founder of Mining Capital Coin (MCC), lied to investors about the company’s crypto mining capabilities and the function of its proprietary token, while at the same time stealing $62 million from their investments stole and put them in crypto wallets he controlled.
“Capuci and his co-conspirators touted MCC’s alleged international network of cryptocurrency mining machines as capable of generating significant profits and guaranteed returns by using investors’ money to mine new ones cryptocurrencies use.
Capuci also touted MCC-owned cryptocurrency Capital Coin as a supposedly decentralized autonomous organization “stabilized by revenue from the world’s largest cryptocurrency mining operation.”
However, as alleged in the indictment, Capuci ran a fraudulent investment scheme and did not use investors’ funds to mine new cryptocurrencies as promised, but instead redirected the funds to cryptocurrency wallets under his control.”
The DOJ also alleges Capuci defrauded investors by misleading them about the company’s so-called “trading bots” that were “created by leading software developers in Asia, Russia and the US” and started a pyramid scheme.
“The indictment further alleges that Capuci touted and fraudulently marketed MCC’s alleged ‘trading bots’ as an additional investment mechanism for investors to invest in the cryptocurrency market…
Capuci allegedly ran an investment scam scheme with the Trading Bots and did not use MCC Trading Bots as he had promised to generate income for investors, instead diverting the funds to himself and his co-conspirators.
Capuci is also said to have recruited promoters and affiliates to promote MCC and its various investment programs through a multi-level marketing system commonly known as the pyramid scheme.”
The CEO is charged with numerous crimes, including conspiracy to commit wire fraud, conspiracy to commit securities fraud, and conspiracy to commit international money laundering, according to the DOJ. If convicted, he faces a maximum sentence of 45 years.
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Source: Crypto News Deutsch