1 year ago
112 Founder and Chief Executive Officer of Mining Capital Luiz Capuci Jr. have been indicted for his major role in a $62 million cryptocurrency investment fraud scheme, according to the U.S. Department of Justice (DoJ).
Kenneth Polite, Assistant Attorney General at the DoJ stated that crypto-based fraud impacts financial markets all over the world as it limits entrepreneurs’’ ability to innovate in the industry. It also makes the market very insecure for investors.
Kenneth noted that the department will always act in a way to expose criminal schemes. it will always seek to protect investors and hold the fraudsters responsible for their acts.
Florida-based Capuci is being accused of misleading investors about the crypto mining and investment program of MCC. He and his accomplices deceived investors that they can purchase mining packages as a way of investing in MCC.
Capuci Promised Investors Lofty Returns And Stole Their Funds
The DoJ press release noted that Capuci and his co-conspirators allegedly promoted MCC’s cryptocurrency machines as being able to provide a high amount of returns. They promised lofty profits and used investors’ funds to mine new cryptocurrencies.
MCC’s cryptocurrency Capital Coin was also promoted by Capuci as a decentralized autonomous organization. According to the DoJ, the defendant promoted it as being “stabilized by revenue from the biggest cryptocurrency mining operations in the world.”
However, after receiving the funds from the investors, Capuci diverted their money to cryptocurrency wallets he controls and manages.
He is also accused of marketing MCC’s alleged Trading Bots as an added investment platform to lure investors to invest in the crypto market. Capuci recruited affiliates and promoters to support and endorse MCC and its various investment programs via a pyramid scheme.
Capuci Could Face Up To 45 Years In Prison
The DoJ has intensified efforts to protect the digital asset market and get rid of fraudsters selling fake investment products to unsuspecting victims. Last month, it charged the former co-owner of NFL’s Minnesota Vikings, Reginald Fowler, for facilitating a $750 million fraud from 2013 to 2019. If found guilty, he could be facing up to 90 years in prison for operating unauthorized money transmitting business and bank fraud conspiracy.
He faces 90 years in jail after pleading guilty to bank fraud, bank fraud conspiracy, and operation of unlicensed money transmitting business. In the case of Capuci, the charges against him include conspiracy to commit international money laundering, conspiracy to commit wire fraud, and conspiracy to commit securities fraud. He faces a maximum of 45 years if found guilty of all charges.
