Crypto
Mining Capital Coin CEO indicted for allegedly running a cryptocurrency pyramid scheme
However as a substitute, the DOJ alleges, Capuci diverted the funds to his personal cryptocurrency wallets. MCC netted no less than $8.1 million from the sale of the mining packages and $3.2 million in initiation charges, which funded a lavish way of life, together with Lamborghinis, a yacht and actual property, in keeping with the SEC criticism.
“Cryptocurrency-based fraud undermines monetary markets worldwide as dangerous actors defraud buyers and limits the power of legit entrepreneurs to innovate inside this rising area,” stated Assistant Legal professional Common Kenneth A. Well mannered, Jr. of the Justice Division’s Felony Division.
CNN Enterprise has reached out to Capuci for remark.
Capuci additionally marketed MCC’s personal cryptocurrency, “Capital Coin,” in keeping with the DOJ press launch. The discharge alleges one other fraudulent MCC funding avenue, “Buying and selling Bots,” which Capuci claimed operated at “very excessive frequency, with the ability to do 1000’s of trades per second.” Capuci claimed the Buying and selling Bots would offer every day returns, in keeping with the DOJ launch.
Capuci additionally allegedly ran a pyramid scheme, in keeping with the DOJ, recruiting promoters to promote the mining packages and promising them presents starting from Apple watches to Capuci’s private Ferrari, the press launch says.
The DOJ charged Capuci with conspiracy to commit wire fraud, conspiracy to commit securities fraud, and conspiracy to commit worldwide cash laundering. He may withstand 45 years in jail if convicted of all counts. The FBI Miami discipline workplace and the Homeland Safety Investigations are investigating the case.