- Another unethical activity by a crypto company head is disclosed.
- The DoJ alleges that the MCC CEO Luiz Capuci Jr. coaxed investors into a mining and investment program.
- This is not the first time such an act happened, as DoJ has indicted several entities earlier.
Luiz Capuci Jr., the Mining Capital Coin CEO and founder, faced an indictment recently under an accusation by the Department of Justice (DoJ) of allegedly operating a global investment fraud scheme worth $62 million.
Now he becomes the latest one among some other crypto company heads to be charged in similar activities. Capuci carried out his acts by convincing the investors to buy Mining packages through his company. These packages are basically a global network of crypto mines that weekly promise a specific return on investment (ROI).
He Recruited Folks To Bring His Intentions To Life
The DoJ claims that rather than utilizing the investors’ fund to mine crypto as promised, what he did was to transfer the funds to his own crypto wallets. Whereas another of his company’s products, called Trading Bots, functioned under a similar false pretense that the founder claimed were functioning in very high frequency, with the capacity to carry out thousands of transactions per second, he further promised the investors daily returns.
According to the indictment by DoJ, as Capuci did with the Mining Packages, however, he allegedly ran an investment fraud scheme with the Trading bots. He was not utilizing the MCC Trading Bots to generate income for investors. Rather was diverting those funds to himself and his fellow conspirators.
He even recruited promoters and affiliates to coax the investors and, in turn, promised these recruits expensive gifts like iPads, Apple watches, etc. The FBI’s Miami Field Office is currently looking over the case.
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Capuci is charged with conspiracy to commit wire fraud, conspiracy to commit international money laundering, and conspiracy to commit securities fraud. He might face a prison sentence of a maximum of 45 years.
These types of activities have been a bit common in the entire cryptocurrency space. Earlier in the year, the DoJ also indicted Satishkumar Kurjibhai Kumbhani, the founder of Bitconnect, for allegedly running a fraud worth $2 Billion.
Source: https://www.thecoinrepublic.com/2022/05/07/doj-indicted-mining-capital-coin-ceo-in-a-fraud-worth-62-million/