- Crypto mining and trading were not the focus of Mining Capital Coin’s investments.
- Last week, a South Korean crypto exchange chief executive was detained.
The U.S. Department of Justice has accused Luiz Capuci Jr., Mining Capital Coin CEO, of organizing a huge cryptocurrency fraud operation. Charged with many felonies, including wire fraud, money laundering, and securities fraud, Capuci faces up to 45 years in jail.
Classic Pyramid Fraud
Authorities in the United States believe Capuci and others conspired to scam investors out of $62 million. But, as claimed, crypto mining and trading were not the focus of Mining Capital Coin’s investments. For investors, the corporation had an extensive network of mining facilities that could deliver consistent profits, he promised them.
Capuci also claimed that the company’s trading bots had been developed by top programmers worldwide while pitching them to investors. According to federal authorities, the truth is that Mining Capital Coin was a classic pyramid fraud. None of the aforementioned initiatives got a penny of the business’s money from investors. Instead, prosecutors allege that Capuci transferred the stolen monies to his own cryptocurrency wallets without following through on the company’s commitments.
According to U.S. Assistant Attorney General Kenneth Polite Jr., criminal cryptocurrency scams weaken the emerging market, and the government is dedicated to enforcing laws against financial fraud.
Crypto scams have been on the rise, and many have been charged. Last week, a South Korean crypto exchange chief executive was detained for espionage. In late February, a grand jury accused Satish Kumbhani, the co-founder of the BitConnect cryptocurrency exchange, of a wide range of charges.
