Mining Capital Coin CEO charged with $62M crypto fraud

The U.S. Department of Justice has unsealed an indictment charging Luiz Capuci Jr., the CEO of Mining Capital Coin (MCC), for orchestrating a $62 cardinal planetary concern and fraud scheme. The institution purported to run a mining and concern platform. A press release unveiled this quality connected May 6.

Capuci misled investors astir MCC’s crypto mining and concern programme per the indictment. The programme required investors to acquisition Mining Packages. Capuci and his co-conspirators praised the MCC program, saying the institution had an planetary web of mining equipment.

According to them, miners needed to put to powerfulness the crypto mining machines, which could purportedly make important profits and guaranteed returns. Additionally, Capuci lauded the MCC’s token, Capital Coin, arsenic a decentralized autonomous enactment (DAO) that had stableness backed by gross from the largest crypto mining enactment successful the world.

However, Capuci did not usage the invested funds to excavation caller crypto. Instead, helium directed the funds into wallets nether his control.

Commenting connected Capuci’s indictment, Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division said:

Cryptocurrency-based fraud undermines fiscal markets worldwide arsenic atrocious actors defraud investors and limits the quality of morganatic entrepreneurs to innovate wrong this emerging space.

He added that the section is committed to pursuing the wealth to exposure transgression schemes, clasp fraudsters accountable, and support investors. 

Capuci is facing aggregate charges

Apart from deceiving investors astir investing their money, Capuci besides praised MCC’s alleged Trading Bots arsenic an further concern mechanics for crypto adopters. He claimed that MCC teamed up with starring bundle developers successful Asia, Russia, and the U.S. to make precocious Trading Bots, which the institution tested with caller technology.

He further touted the Trading Bots, saying they operated astatine a precocious frequency, which enabled them to implicit thousands of trades per second. Capuci said they would make regular returns for investors arsenic portion of lauding the bots. However, investors suffered the aforesaid destiny arsenic those that invested successful the crypto mining strategy aft Capuci and his co-conspirators pocketed the invested funds.

The indictment besides alleges that Capuci recruited promoters and affiliates to beforehand MCC and its concern programs done a multi-level selling strategy (MLM). Additionally, authorities charged him with conspiracy to perpetrate ligament fraud, conspiracy to perpetrate securities fraud, and conspiracy to perpetrate planetary wealth laundering.

If convicted of each charges, Capuci volition look 45 years successful prison. A national territory tribunal justice volition find his condemnation aft considering the U.S. Sentencing and Guidelines and different statutory factors.