The Coin Leaks News: The U.S. Department of Justice (DOJ) has announced the filing of charges against the chief executive officer of a cryptocurrency mining company for allegedly operating an investment fraud global scheme.
According to a report released in a statement by DOJ, Luiz Capuci Jr. the director of the company and its founder, Mining Capital Coin (MCC) was a fraud to investors regarding the company’s capabilities to mine crypto and the purpose of its proprietary token while taking $62 million from their capital and depositing it into the crypto wallets controlled and that were controlled by Luiz Capuci Jr.
“Capuci as well as his accomplices boasted about MCC’s alleged international network of mining machines for cryptocurrency that could generate significant profits and guarantee yields by using the money of investors to create new cryptocurrency.
Capuci also promoted MCC’s coin, Capital Coin, as an unofficial, decentralized organization that was stabilized by the revenue from the largest cryptocurrency mining business in the entire world.’
According to the indictment Capuci was the operator of an investment scheme that was fraudulent and did not make use of funds from investors to create new cryptocurrency as he had promised, but instead, he diverted funds to cryptocurrency wallets that were under the control of Capuci.”
The DOJ also asserts that Capuci fraudulently swindled investors by telling them about the company’s “trading bots” that are “created by the top developers of software from Asia, Russia, and the US,” and by creating an elaborate pyramid scheme.
“The indictment further claims that Capuci promoted and fraudulently advertised MCC’s purported “Trading Bots” as an additional investment method that allowed buyers to put money into the crypto market…
Capuci is accused of operating an investment scam using trading bots. Trading Bots and was not promising to be making use of MCC Trading Bots to generate money from investors. Instead, he was transferring the money to himself and his co-conspirators.
Capuci may also recruit affiliates and promoters to spread the word about MCC and its numerous investment opportunities via a multi-level advertising scheme which is also known as the pyramid scheme.”
The CEO faces charges of several felonies, such as the conspiracy for wire fraud as well as the conspiracy of committing securities fraud, and conspiracy to engage in global money laundering as per the DOJ. If convicted, he could face an maximum punishment of up to 45 years.