The company conducted out a pyramid archetype where the funds got split into the directors’ accounts, who took advantage of the capital to fulfill their wealthy pleasures. The authorities alerted that this scam is prevalent, and they suggested potential investors be very attentive.
The US Department of Justice legally charged Luiz Capuci Jr, who played a role as CEO of the crypto mining and investment entity “Mining Capital Coin.” They filed fraud charges against many investors, thousands perhaps, whom he deceived for at least $62 million in suspicious business offerings.
The CEO of Mining Capital Coin, Caught in the US
In a press release revealed by the DoJ last Friday, the charges against Capuci arrived after diverting funds from users to their accounts. He encouraged investment in “trading bots and would execute thousands of financial operations per second and gather profits for the users who dare to invest their capital in the entity.
The DoJ alleged that Capuci carried out some pyramid scheme in which investments capitalized by new entrants got sent to pay off older ones, encouraging them to bring in more relevant numbers of users in exchange for items such as iPads, and Apple Watches; offering an expensive Ferrari to the member who achieved the best ranking to obtain the alleged benefit of the entity.
After gathering the capital, Capuci just sent funds to his private wallets and to that of some people included in the scam. They obtained luxury properties and supported expenses to keep having a wealthy lifestyle and show off their bonanza to attract more unaware victims.
People Did not Read the Signs
Under the management of Capuci, Mining Capital Coin offered an investment structure that relied on different edges. A legal complaint issued with the US Securities and Exchange Commission (SEC) details that the solidity of the proposal was crypto mining packages with profits per day registered at 1%, which got paid weekly through the same network.
The team behind Mining Capital Coin explained that the financial gains would be in Bitcoin. They executed sudden improvements that resulted in harmful actions against investors, demanding, for example, that withdrawals got made in Capital Coin, the company’s native currency that had zero commercial value.
Other worrying signs arrived when the alleged annual memberships expired since flaws came to light while processing the requests. In most cases, the victims got required to purchase more investment packages so they would not lose the capital caught in the network.
The fraudulent procedure worked by Mining Capital Coin has been active since January 2018, for which the scam managed to harm more than 65,000 unaware victims. The authorities alerted that this modus operandi is an everyday action, so they warned possible interested parties to consider the alert before risking their investment, waiting for such promises to get fulfilled.
Regarding Capuci, he goes through charges of wire fraud, securities fraud, money laundering on an international scale, and other criminal behaviors. He would be about to spend at least 45 years in prison if the court found him guilty of all the legal charges against him.
By: Jenson Nuñez
