The CEO of Mining Capital Coin is Inculpate for Jiggery-pokery of $62M Investment Scheme
The DOJ said, “Capuci operated a fraudulent investment scheme and did not use investors’ funds to mine new cryptocurrency, as promised, but instead diverted the funds to cryptocurrency wallets under his control”.
Luiz Capuci Jr. is the CEO and co-founder of the crypto mining and investment platform Mining Capital Coin (MCC). The Department of Justice (DOJ) has been indicted for “allegedly orchestrating a $62 million global investment fraud scheme.”
The DOJ confirmed that Capuci is accused of conspiracy of committing wire fraud, the conspiracy of committing securities fraud, the conspiracy of committing international money laundering, and several allegedly fraudulent schemes run via MCC. He will have a sentence of 45 years imprisonment if he is proved guilty.
Rendering to the DOJ’s impeachment, Capuci along with the co-traitors is accused of confusing investors over the profit-bearing probability of MCC mining packages and a local token labeled as Capital Coin that was sponsored by the “biggest cryptocurrency mining operation in the world.”
As a portion of the mining packages, Capuci has advertised “substantial profits and guaranteed returns by using investors’ money to mine new cryptocurrency” but he has failed to keep on his words.
“As alleged in the indictment, however, Capuci operated a fraudulent investment scheme and did not use investors’ funds to mine new cryptocurrency, as promised, but instead diverted the funds to cryptocurrency wallets under his control.”
Capuci is also the defendant of promoting doubtful MCC trading bots “with new technology never seen before” that could comportment “thousands of trades per second “ and create daily revenues for investors.
“As he did with the Mining Packages, however, Capuci allegedly operated an investment fraud scheme with the Trading Bots and was not, as he promised, using MCC Trading Bots to generate income for investors, but instead was diverting the funds to himself and co-conspirators,” the DOJ added.
Moreover, Capuci, being the MCC CEO and co-founder, purportedly conscripted MCC promoters and affiliates as part of a multi-level marketing scheme. In return for enticing stockholders into the MCC ecology, Capuci is said to have assured anything from “Apple watches and iPads to luxury vehicles such as a Lamborghini, Porsche” and even his own personal Ferrari.
“Capuci further concealed the location and control of the fraud proceeds obtained from investors by laundering the funds internationally through various foreign-based cryptocurrency exchanges.”
The DOJ’s accusation was also proclaimed on the same day that the U.S. Securities and Exchange Commission (SEC) outlined fraud charges against MCC, co-founder Emerson Pires, Capuci, and two entities controlled by Capuci in CPTLCoin Corp. (CPTLCoin) and Bitchain Exchanges (Bitchain).
The SEC complained that over the course of a year “MCC, Capuci, and Pires sold mining packages to 65,535 investors worldwide and promised daily returns of 1 percent, paid weekly”.
The SEC suspected that stockholders were primarily promised revenues in Bitcoin (BTC), though, this was later changed to MCC’s Capital Coin (CPTL), which could only be cashed on “a fake crypto asset trading platform Capuci created and managed” called Bitchain.
Nevertheless, when it came time for users to draw BACK their funds, they were only able to purchase another mining package or loss their funds.
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Pires and Capuci allegedly “netted at least $8.1 million from the sale of the mining packages and $3.2 million in initiation fees.”
“As the complaint alleges, Capuci and Pires took every opportunity to extract more money from unsuspecting investors on false promises of outlandish returns and used investor funds raised from this fraudulent scheme to fund a lavish lifestyle, including purchasing Lamborghinis, yachts, and real estate,” confirmed A. Kristina Littman, chief of the SEC enforcement division’s Crypto Assets and Cyber Unit.
The SEC also specified that the District Court for the Southern District of Florida dispensed a temporary warning order against the suspects last month and an instruction to halt their properties.
