Luiz Capuci, the CEO of Mining Capital Coin (MCC), was believed to have been accused of organizing a $62 million global investment fraud conspiracy, as evidenced by an allegation that was unsealed on May 9.
According to the allegation, Capuci misled investors about the company’s cryptocurrency mining program, where they could buy “Mining Packages” and invest money in Mining Capital Coin.
Capuci and his co-conspirators promoted MCC’s alleged multinational network of cryptocurrency mining equipment as capable of generating significant profits and making assured returns by mining new cryptocurrencies with investors’ money.
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The CEO also promoted MCC’s own cryptocurrency, Capital Coin, as a “decentralized autonomous organization” reportedly backed by revenues from the world’s largest cryptocurrency mining operation. However, Capuci ran a fraudulent investment scam where he diverted investors’ money into Bitcoin wallets under his control instead of mining new cryptocurrency.
In addition, in accordance with the allegation, Capuci is alleged to have illegally promoted MCC’s “Trading Bots” as an alternative investment method for shareholders to invest in the cryptocurrency market. The CEO allegedly ran an investment fraud scheme with the “Trading Bots” whereby he did not employ MCC Trading Bots to create money for investors as he claimed, but instead transferred money to himself and co-conspirators.
In addition, Capuci is accused of running a pyramid scheme where he enlisted marketers and employees to endorse MCC as well as a number of different investment programs. The United States Department of Justice reported:
To help investors invest successfully, Capuci promised MCC’s network of promoters and affiliates a range of gifts, from Apple watches and iPads to luxury vehicles such as a Lamborghini, Porsche and even Capuci’s personal Ferrari.
So by laundering money through a number of foreign digital currency exchanges, the CEO of MCC obscured ownership of the scam profits collected from the investors.
Capuci faces a maximum prison sentence of 45 years on charges of conspiracy to commit wire transfers and money laundering. A federal judge will impose a sentence based on the U.S. sentencing guidelines and other legal circumstances.
In April, Virgil Griffith, a US resident, was found guilty of helping North Koreans evade sanctions through the use of digital assets and blockchain technology.
by Aaron S. – Expert Reviewer, BitDegree