Published on: May 11, 2022
The US Department of Justice (DoJ) has charged the CEO of Mining Capital Coin (MCC), a self-advertised cryptocurrency mining and investment platform, for allegedly organizing a $62 million global investment fraud scheme.
Luiz Capuci Jr., 44, from Florida allegedly misled investors about MCC’s cryptocurrency mining and investment program by selling what are known as “Mining Packages.” This is essentially a rentable chuck of computing power that’s part of a larger network of crypto mining machines. Investors were promised substantial profits and guaranteed returns from these packages by Capuci.
Capuci also endorsed Capitol Coin, his firm’s own cryptocurrency, as a decentralized autonomous organization that was “stabilized by revenue from the biggest cryptocurrency mining operation in the world.”
However, he instead allegedly operated a fraudulent investment scheme that diverted investors’ funds to cryptocurrency wallets under his control.
Additionally, Capuci is accused of deceiving investors with promises that his company’s “Trading Bots” could conduct thousands of trades per second, due to “new technology never seen before.”
“As he did with the Mining Packages, however, Capuci allegedly operated an investment fraud scheme with the Trading Bots and was not, as he promised, using MCC Trading Bots to generate income for investors, but instead was diverting the funds to himself and co-conspirators,” the DoJ said in a press release last week.
He allegedly hid the location and control of the stolen funds from the fraud by laundering them internationally through various crypto exchanges.
According to the DoJ’s indictment, the crypto CEO lavished gifts on new investors ranging from Apple watches and iPads to luxury vehicles like a Lamborghini, Porsche, and even Capuci’s personal Ferrari.
Capuci is charged with conspiracy to commit wire fraud, conspiracy to commit securities fraud, and conspiracy to commit international money laundering. This brings his maximum total penalty to 45 years in prison if convicted of all counts.