Luiz Capuci, the CEO of Mining Capital Coin (MCC), was supposedly charged with organizing a $62 million worldwide investment fraud conspiracy, as stated by an allegation unsealed on May 9th.
According to the accusation, Capuci deceived investors about the company's cryptocurrency mining program where they could purchase "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 able to create significant profits and assured returns by mining new cryptocurrencies using investors' money.
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The CEO also promoted MCC's own cryptocurrency, Capital Coin, as a "decentralized autonomous organization" that is allegedly supported by earnings from the world's largest cryptocurrency mining operation. However, Capuci conducted a fraudulent investment scam in which he redirected investors' money to Bitcoin wallets under his control rather than mining new cryptocurrency.
Additionally, in accordance with the accusation, Capuci is alleged to have illegally promoted MCC’s “Trading Bots” as an alternative investing method for shareholders to invest in the cryptocurrency market. The CEO reportedly ran an investment fraud scheme with the "Trading Bots", not employing MCC Trading Bots to create money for investors as he claimed, but instead transferring funds to himself and co-conspirators.
Moreover, Capuci is accused of conducting a pyramid scam where he enlisted marketers and associates to endorse MCC, as well as a number of various investment programs related. The U.S. Department of Justice reported:
For successfully luring investors to invest, 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 covered up the ownership of the scam profits collected from the investors.
Capuci faces a maximum sentence of 45 years in jail as he is accused of conspiring to conduct wire fraud and money laundering. A federal-state judge will impose a sentence based on the United States Sentencing Guidelines and other legal circumstances.
Back in April, Virgil Griffith, a US resident, was found guilty of aiding North Koreans in evading sanctions through the use of digital assets and blockchain technology.