New York
CNN Enterprise
—
The Justice Division indicted Mining Capital Coin CEO Luiz Capuci Jr. for “allegedly orchestrating a $62 million world funding fraud scheme,” the company stated Friday.
Mining Capital Coin, or MCC, is a cryptocurrency mining and funding platform. Capuci, who’s from Port St. Lucie, Florida, allegedly misled traders by promoting “Mining Packages,” promising substantial returns from mining new cryptocurrencies in what MCC described as their worldwide community of crypto mining machines, according to the DOJ press release.
In line with a US Securities and Change Fee complaint filed final month, Capuci offered mining packages to greater than 65,000 traders since not less than January 2018. The group promised every day returns of 1% for as much as a yr, the SEC press launch says.
However as an alternative, the DOJ alleges, Capuci diverted the funds to his personal cryptocurrency wallets. MCC netted not less than $8.1 million from the sale of the mining packages and $3.2 million in initiation charges, which funded a lavish way of life, together with Lamborghinis, a yacht and actual property, in response to the SEC criticism.
“Cryptocurrency-based fraud undermines monetary markets worldwide as unhealthy actors defraud traders and limits the power of legit entrepreneurs to innovate inside this rising area,” stated Assistant Lawyer Normal Kenneth A. Well mannered, Jr. of the Justice Division’s Felony Division.
CNN Enterprise has reached out to Capuci for remark.
Capuci additionally marketed MCC’s personal cryptocurrency, “Capital Coin,” in response to the DOJ press launch. The discharge alleges one other fraudulent MCC funding avenue, “Buying and selling Bots,” which Capuci claimed operated at “very excessive frequency, with the ability to do 1000’s of trades per second.” Capuci claimed the Buying and selling Bots would supply every day returns, in response to the DOJ launch.
Capuci additionally allegedly ran a pyramid scheme, in response to the DOJ, recruiting promoters to promote the mining packages and promising them items starting from Apple watches to Capuci’s private Ferrari, the press launch says.
The DOJ charged Capuci with conspiracy to commit wire fraud, conspiracy to commit securities fraud, and conspiracy to commit worldwide cash laundering. He may resist 45 years in jail if convicted of all counts. The FBI Miami subject workplace and the Homeland Safety Investigations are investigating the case.
The Justice Division has charged others this yr for operating fraudulent cryptocurrency schemes. In February, a federal grand jury in San Diego indicted the founding father of BitConnect for allegedly orchestrating a $2.4 billion world Ponzi scheme.
