The Department of Justice has indicted the CEO of Mining Capital Coin over a $62 million global investment fraud scheme. The DoJ said that Luiz Capuci Jr. is being charged with various offences ranging from fraud to money laundering.
Mining Capital Coin CEO indicted
The DoJ said that Capuci was being indicted over a conspiracy to commit various offences, including wire fraud, securities fraud and international money laundering. These offences were conducted when Capuci spearheaded various fraudulent schemes under Mining Capital Coin.
If Capuci is found guilty of these offences, he faces up to 45 years in prison. The DoJ indictment said that Capuci, alongside other persons involved in the scheme, misled investors by promising them high profits by investing in Mining Capital Coin’s initiatives and buying a native token for the project dubbed Capital Coin. The coin was backed by the “biggest cryptocurrency mining operation in the world.”
While Capuci promised his investors high returns, he failed to deliver because the money did not go towards the promised initiatives. According to the DoJ, “Capuci operated a fraudulent investment scheme and did not use investors’ funds to mwsxine new cryptocurrency, as promised, but instead diverted the funds to cryptocurrency wallets under his control.”
Capuci also invested heavily in marketing and advertising. The Mining Capital Coin CEO hired top promoters and affiliates to attract more investors to the project. Capuci even promised investors Apple watches, iPad and luxury vehicles to investors to lure them to the scheme.
“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 added.
SEC files charges against Mining Capital Coin
The US Securities and Exchange Commission (SEC) has also filed fraud charges against the executi9ves of Mining Capital Coin, including Capuci, Emerson Pires and two other firms linked to Capuci, including Bitchain Exchanges and CPTLCoin Corp.
The SEC said that these executives lied to investors about receiving their returns in Bitcoin, but instead, they received the returns in the form of MCC’s Capital Coin. The coin was only redeemable on Bitchain, which the SEC said was a “fake crypto asset trading platform Capuci created and managed.”
Kristina Littman, the chief of the SEC enforcement division’s Crypto Assets and Cyber Unit, said that “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.”
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