Mining Capital Coin CEO Accused For Fraud Scheme Worth $62M

Mining capital coin CEO Luiz Capuci got accused of a fraud scheme worth $62 million however he didn’t use the investors’ funds to mine new crypto but diverted them to crypto wallets under his contrl according to the DOJ reports so let’s read more today in our latest cryptocurrency news.

The DOJ stated:

“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.”

The Mining Capital Coin CEO Luiz Capuci was indicted by the US DOJ for orchestrating a $62M global investment fraud scheme. The DOJ charged Capuci with conspiracy to commit wire fraud and conspiracy t commit securities fraud and international money laundering in relation to a few fraudulent schemes which were run via MCC. If found guilty, he faces a maximum prison time of 45 years. As per the DOJ indictment, Capuci had other co-conspirators and got accused of misleading the investors over the profit-bearing potential of MCC mining packages and the native token dubbed Capital Coin which is backed by the “biggest crypto mining operation in the world.”

As a part of the mining package, Capcui is said to have touted major profits and guaranteed returns by using investor’s money to mine new crypto but failed to deliver on the bargain:

“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 accused of marketing dubious MCC trading bots with the new technology not seen before which could conduct thousands of trades per second and generate daily returns for the investors. The DOJ indictment read:

“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 MCC CEO recruited MCC promoters and affiliates as a part of the multi-level marketing scheme and in return for luring the investors into the ecosystem, Capuci promised anything from Apple Watches and iPads to luxury vehicles like Porsche or Lamborgini:

“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 SEC also alleged that Capuci netted at least $8.1 million from the sale of mining packages and $3.2 million in initiation fees.”