Mining Capital Coin CEO accused of $62M investment fraud scheme

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  • Luiz Capuci Jr., CEO and co-founder of crypto mining and investment platform Mining Capital Coin (MCC), has been indicted by the Department of Justice (DOJ) for allegedly orchestrating a $62 million global investment fraud scheme.
  • The DOJ is charging Capuci with conspiracy to commit wire fraud, conspiracy to commit securities fraud, and conspiracy to commit international money laundering in relation to several allegedly fraudulent schemes that were run via MCC.
  • According to the DOJs indictment, Capuci (alongside unnamed co-conspirators) is accused of misleading investors over the profit-bearing potential of MCC mining packages and a native token dubbed Capital Coin that was backed by the biggest cryptocurrency mining operation in the world.
  • As part of the mining packages, Capuci is said to have touted substantial profits and guaranteed returns by using investors money to mine new cryptocurrency but allegedly failed to deliver on the bargain.
  • Capuci is also accused of marketing dubious MCC trading bots with new technology never seen before that could conduct thousands of trades per second and generate daily returns for investors.
  • Additionally, the MCC CEO and co-founder allegedly recruited MCC promoters and affiliates as part of a multi-level marketing scheme. In return for luring investors into the MCC ecosystem, Capuci is said to have promised anything from Apple watches and iPads to luxury vehicles such as a Lamborghini, Porsche and even his own personal Ferrari.
  • The DOJs indictment was also announced on the same day that the U.S. Securities and Exchange Commission (SEC) outlined fraud charges against MCC, co-founder Emerson Pires, Capuci, and two entities controlled by Capuci in CPTLCoin Corp. (CPTLCoin) and Bitchain Exchanges (Bitchain).
  • According to the SECs complaint, MCC, Capuci, and Pires sold mining packages to 65,535 investors worldwide and promised daily returns of 1 percent, paid weekly over the course of a year.
  • The SEC alleges that investors were initially promised returns in Bitcoin (BTC), however this was subsequently changed to MCCs Capital Coin (CPTL), which could only be redeemed on a fake crypto asset trading platform Capuci created and managed called Bitchain.
  • However, when it came time for users to withdraw their funds, they were only able to purchase another mining package or forfeit their funds.
  • The SEC alleges that Pires and Capuci netted at least $8.1 million from the sale of the mining packages and $3.2 million in initiation fees.
Mining Capital Coin CEO accused of $62M investment fraud scheme
Mining Capital Coin CEO accused of $62M investment fraud scheme 2

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