On 6 May, the US Department of Justice accused Luiz Capuci Jr., the CEO of Mining Capital Coin, for conducting a massive cryptocurrency fraud scheme. Capuci faces up to 45 years in prison after being charged with numerous offences including wire fraud, money laundering, and securities fraud.
According to US authorities, Capuci and others colluded to defraud investors of $62 million. Mining Capital Coin’s investments were not focused on crypto mining and trading, as advertised. He promised investors that the firm had a vast network of mining operations that could produce constant earnings.
Capuci also stated that the company’s trading bots had been developed by top programmers globally while presenting them to investors. According to federal investigators, Mining Capital Coin was a conventional pyramid scheme. Investors did not contribute a single penny to any of the aforementioned efforts. Instead, authorities claim that Capuci transferred the stolen funds to his own cryptocurrency wallets without fulfilling the company’s promises.
Criminal cryptocurrency frauds, according to US Assistant Attorney General Kenneth Polite Jr., damage the nascent market, and the government is committed to enforcing laws against financial fraud.
Crypto frauds are on the rise, and many people have been charged. A South Korean crypto exchange CEO was arrested for spying last week. A grand jury indicted Satish Kumbhani, co-founder of the BitConnect cryptocurrency exchange, on a slew of counts in late February.
