Mining Capital Coin CEO Luiz Capuci Jr has just been arraigned in an investment fraud case totaling $62 million. According to the Department of Justice, Capuci used the platform owned by his company to defraud several investors globally. The DOJ has announced that Capuci would be charged with several offenses, including using the Mining Capital Coin platform to carry out a series of criminal schemes. Capuci could spend up to 45 years behind bars if the verdict is guilty.
Mining Capital Coin sold fake packages
In the statement made available by the DOJ, Capuci and several others who were not mentioned at the time lied to investors about the profits recouped from the Mining Capital Coin platform. Asides from being untruthful about the several packages on the platform, the CEO and his co-conspirators also went further to lie about the potential of the platform’s native token, the Capital coin.
The platform mentioned that the digital asset had the backing of the best mining company in the world. In line with the several packages on the platform, Capuci promised investors that their investments would be used to create new tokens. This will enable them to recoup massive profits when their investment period ends. However, investors noted that Capuci has failed to deliver both the realized gains and the capital they invested on the Mining Capital Coin platform.
The DOJ breaks down MCC’s operation
The DOJ statement also mentioned that the Mining Capital Coin CEO lied about the investments and took the funds from investors into digital assets, which are now in his wallet. Asides from that, he has also been accused of announcing the sale of fake trading bots. According to the regulatory body, he told traders that the bots are efficient in carrying out a massive number of trades every second, translating to huge rewards for them. The agency mentioned that the trading bot business also went smoothly, just like he did with the mining schemes.
The founder also hired top-notch promoters to help him spread the gospel of his malicious activities across several platforms. As incentives for users that bring the most investors to the platforms, Capuci said he would reward them with prices such as digital watches, mobile devices, cars, and at a time, his Ferrari. Capuci also hid the movement of the proceeds from the frauds, running it through several crypto exchanges in the process. The indictment was released when the SEC announced charges against the company. In its report, the SEC mentioned that about 65,000 investors were scammed as they were promised a 1% profit at the end of every week.
The agency also noted that the platform initially told them that returns would be paid with Bitcoin but soon changed it to its native token. Users claimed that when their investments were ripe for withdrawal, they could not withdraw. According to the SEC statement, the criminal entities saw close to $62 million from both businesses. The SEC statement also mentioned that the criminal entities never failed to make more money from the investors lying to them about specific areas. However, there is now an order to restrict their movements with their assets currently being frozen.