The US Justice Department indicted Mining Capital Coin (MCC) CEO Luiz Capuci Jr. for “allegedly orchestrating a $62 million global investment fraud scheme,” according to an official release from the agency. Charged with many felonies, including wire fraud, money laundering, and securities fraud, Capuci faces up to 45 years in jail.
MCC CEO Misled Investors
According to the indictment, Luiz Capuci Jr., the CEO, and founder of MCC misled investors about “Mining Packages”, a global network of cryptocurrency mines that promised a certain return on investment every week.
However, instead of using investors’ funds to mine cryptocurrency as promised, the DOJ alleges that Capuci diverted the funds to his own crypto wallets.
Another MCC product, “Trading Bots” also operated under the same false pretenses that claim to function in “very high frequency, being able to do thousands of trades per second” and promised investors daily returns.
As Trading Bots was to generate income for investors, Capuci was instead ‘diverting the funds to himself and co-conspirators’ wrote the DOJ in its indictment.
Classic Case of Pyramid Scheme
In addition to the mining packages and Trading Bots, Capuci also advertised MCC’s own cryptocurrency, “Capital Coin,” another fraudulent MCC investment avenue.
According to the DOJ, Capuci also allegedly ran a pyramid scheme, recruiting promoters to sell the mining packages and promising them gifts ranging from Apple watches to Capuci’s personal Ferrari.
