Crypto News

US Department of Justice indicts Mining CEO of Capital Coin for allegedly conducting a $62 million crypto scam

US Department of Justice indicts Mining CEO of Capital Coin for allegedly conducting a $62 million crypto scam, Crypto Trading News
The United States Department of Justice (DOJ) has indicted Luiz Capuci Jr., the CEO and co-founder of Mining Capital Coin (MCC) for allegedly running a $62 million fraud scheme.

Capital Coin’s Mining CEO Allegedly Misleading Investors

According to the DOJ, Capuci and other unnamed members of his team had misled investors into believing that MCC’s mining and investment program had tremendous profit potential.

Capuci claimed the company has an international network of large mining machines that could generate huge profits and guaranteed returns if investors buy the so-called “mining packages.”

The investment would reportedly lead to prospecting for a new cryptocurrency be used, MCC’s native token called “Capital Coin”. Capuci claimed the token is backed by the “largest cryptocurrency mining operation in the world.” However, he fell short on those promises, preferring to use the funds raised by investors to fund personal crypto wallets under his control.

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

Running MLM scheme

In addition to scam mining packages and token sales, Capuci has allegedly marketed shady MCC trading bots to unsuspecting investors. He claimed that these bots used “new, never-before-seen technology” to execute thousands of trades and generate huge profits every day.

The Justice Department further alleged that Capuci operated MCC as a multi-level marketing (MLM) system, recruiting partners and promoters to attract other investors. They were promised a wide range of rewards, from “Apple Watches and iPads to luxury vehicles like a Lamborghini, Porsche and even Capuci’s personal Ferrari.”

Up to 45 years in prison

Capuci is currently charged with conspiracy to commit wire fraud, conspiracy to commit securities fraud and conspiracy to commit international money laundering. If found guilty of all of these charges, Capuci faces a maximum sentence of 45 years in prison.

Commenting on the recent indictment, Anthony Salisbury, Special Agent in Charge for HSI Miami, said, “This case should serve as a warning to anyone seeking to illegally capitalize on the perceived ambiguity of the burgeoning crypto market to prey on innocent investors.”

Meanwhile, this isn’t the first time the US Department of Justice has indicted a founding member of a fraudulent crypto scheme. Last month, CryptoPotato reported that the DOJ has accused the owner of the Block Bits Fund of misleading investors into investing nearly $1 million in a fake arbitrage– Autotrader to pay.

Source: Crypto News Deutsch

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button