Mining Capital Coin CEO was accused of $62 million crypto fraud

According to the US Department of Justice, Luiz Capuci Jr. and his accomplices created an international fraud scheme

07.05.2022 - 10:15

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2 min

What’s new? The founder and CEO of Mining Capital Coin (MCC) Luiz Capuci Jr. has been accused of creating a $62 million international fraud scheme. According to a press release by the US Department of Justice (DOJ), he misled investors about MCC’s cryptocurrency mining project and the company’s investment program. If found guilty on all counts, Capuci faces a maximum sentence of 45 years in prison.

The DOJ’s press release

What has Capuci been charged with? The CEO of MCC and his accomplices offered customers “Mining Packages” that promised high returns and guaranteed profits. The program involved setting up an international network of crypto mining equipment. However, the defendant did not invest the proceeds in mining but instead directed them to his own cryptocurrency wallets.

In addition, Capuci launched a token, Capital Coin, and promoted it as linked to a decentralized autonomous organization (DAO). Capuci hired promoters and affiliates to promote the token using a multi-level marketing scheme known as a pyramid scheme. He is also alleged to have sold so-called MCC’s “Trading Bots,” which Capuci said allowed generating guaranteed income in the crypto markets thanks to “technology never seen before.” According to the DOJ, the accused used the funds he received from investors for his personal use.

What events happened before? In April 2022, the SEC added a list of “misleading” companies called Public Alert: Unregistered Soliciting Entities (PAUSE). There are a total of 1406 entities on the list. PAUSE includes such projects as SuperBinance, Gemini M&A, and FXTstockstraders.

The SEC would also increase the number of employees at its dedicated Crypto Assets and Cyber Unit to combat digital fraud. The agency would hire 20 investigators and litigators to oversee “of unregulated $1,7 trillion cryptocurrency market.”

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