The chief executive and founder of Mining Capital Coin, Luis Capucci Jr., was indicted. printed Yesterday, he was accused by the Ministry of Justice of allegedly managing a $ 62 million global investment fraud scheme. He is the latest from a few executives of crypto companies who have recently been accused in a similar way.

Through its company, Capuci has persuaded investors to buy Mining Packages, a global network of cryptocurrency mines that promises a certain return on investment each week. But instead of using investors’ funds to dig up cryptocurrency, as he promised, the DOJ claims Capuci has diverted funds to its own cryptocurrency portfolios. Another MCC product, known as Merchant Bots, worked under the same false claims. Cappuccino claims that bots work “very often, making thousands of trades per second” and promises investors to return every day.

“However, as he did with the digging packages, Capucci is said to have run an investment fraud scheme with trading bots and not used, as promised, MCC trading bots to generate income for investors, but instead redirected funds to himself. and associates. -conspirators “, the Ministry of Justice wrote in the indictment.

The MCC appeared to have all the functions of a pyramid scheme. Capuci hired affiliates and promoters to entice investors. In return, he promised promoters a number of lavish gifts, including Apple watches, iPads and luxury vehicles.

The FBI field office in Miami is currently investigating the case. The Justice Department has charged Capuci, who is from Port St. Lucy, Florida, with a conspiracy to commit wire fraud, a conspiracy to commit fraud with securities and a conspiracy to commit international money laundering. If convicted, he receives a maximum sentence of 45 years.

In a review of the cryptocurrency digging platform, crypto blogger Peter Obi noted that the combination of the $ 50 monthly MCC membership fee and its steep 3% withdrawal fee meant that investors were unlikely to win unless they targeted other investors. He said such a referral process was “particularly worrying” because it was in line with other past cryptocurrencies.

Indeed, a number of crypto leaders have been accused by authorities of running Ponzi schemes in recent years. Earlier this year, the Ministry of Justice accused Bitconnect founder Satishkumar Kurjibhai Kumbhani of alleged management of Ponzi’s $ 2 billion scheme – is considered to be the largest pyramid scheme for virtual currency in history.

Cappuccino never registered his company with the SEC. The agency today issued a fraud alert for the company. According to the SEC Capucci and his associates successfully persuaded 65,535 investors to buy digging packages worldwide and promised a daily return of one percent paid weekly for more than a year. In total, the group raised $ 8.1 million from the sale of digging packages and $ 3.2 million from start-up fees.

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