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In a case of allegedly running a global investment fraud scheme, the U.S. Department of Justice (DOJ) has levied charges against the CEO of a crypto mining firm.
Luiz Capuci Jr., founder, and chief executive of the Mining Capital Coin (MCC), raised funds around $62 million through investments by lying to investors about the company’s crypto mining capabilities and the function of its proprietary token, but deposited them into crypto wallets controlled by him, per the statement released by the DOJ.
Capuci along with his co-conspirators approved MCC’s claimed international network of cryptocurrency mining machines in order to make substantial profits and guaranteed returns by leveraging investors’ money to mine new cryptocurrency.
In addition, Capuci touted Capital Coin, MCC’s own cryptocurrency, as a purported DAO which was made stabilized through revenue collected from the world’s largest cryptocurrency mining operation.
Capuci ran a fraudulent investment scheme and as promised, made no use of investors’ funds for mining new cryptocurrency, but instead directed the funds to crypto wallets owned by him, according to the indictment.
Further, according to the claims, investors were scammed by Capuci who misled them about the firm’s “trading bots”, developed by top software developers in the U.S, Asia, and Russia. Investors were also fooled through a pyramid scheme.
Capuci is also alleged to falsely marketed MCC’s purported ‘Trading Bots’ as an additional investment mechanism to invest in the cryptocurrency market for investors, per the indictment.
With the Trading Bots, Capuci ran an investment fraud scheme and as per the promise was not making use of the MCC Trading Bots to make income for investors, but instead was funding himself and his co-conspirators.
To run MCC and its various investment programs through the pyramid scheme, which is a multi-level marketing scheme, Capuci is also alleged to have recruited promoters and affiliates.
DOJ further reveals that there are various charges levied on the CEO including conspiracy to commit securities fraud, conspiracy to commit international money laundering, and conspiracy to commit wire fraud. He would be faced with a maximum total penalty of 45 years if convicted.
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Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
