Andrew Kelly / Reuters. A $62 million cryptocurrency trading. US Securities and Exchange Commission (SEC) shut down Mining enterprise. The suspension Following. The DOJ charged the scheme’s founder. CEO, who faces a maximum sentence of 45 years in prison if convicted on all counts.
A bogus crypto mining and trading scheme. US Securities and Exchange Commission (SEC) shut down on Friday.
Luiz Carlos Capuci Jr. and Emerson Souza Pires found MCC International – Mining Capital Coin. The SEC charged both founders as well as two other firms. According to the agency, the allegations “are related to the fraudulent marketing of unregistered offerings. Investment plans known as mining packages to thousands of investors.”
According to the information gathered by the securities watchdog. There dates back to 2018,
MCC, Capuci, and Pires sold mining packages to up to 65,535 investors around the world. Promising daily returns. The program claimed 1% weekly returns and profit were guaranteed for investors for up to 52 weeks.
According to the charges, investors in the scheme were guaranteed bitcoin returns. Introduced MCC’s token, capital coin (CPTL), into which investors were needed to withdraw their funds.
In response to the SEC’s efforts, the US Department of Justice (DOJ) issued an indictment against Capuci. The creator and CEO of MCC, a cryptocurrency mining and investment platform. The investment site is accused of being a $62 million global cryptocurrency fraud scam. According to the indictment.
The Department of Justice
The Department of Justice described the platform as fraudulent. Accusing Capuci of recruiting and manipulating investors into MCC’s stated mining packages. He and other conspirators claimed that MCC had a global network of cryptocurrency. It has mining devices capable of providing “guaranteed high returns” to investors.
MCC’s native cryptocurrency token, according to the conspirators. It is a decentralized autonomous organization supported by revenue. The world’s largest cryptocurrency mining operation.
“However, Capuci did not employ investor cash to create new cryptocurrencies,” the DOJ added. His investment scheme was deceptive. He moved all investor monies to his own cryptocurrency accounts. Capuci promoted some trading bots under MCC’s products. As an alternative investment mechanism to help investors earn in the bitcoin market, according to the indictment.
Promoters MCC in a pyramid scheme. Ownership of the investment profits through the use of multiple cryptocurrency exchanges.
A review of the platform also reveal. The combination of MCC’s $50 monthly membership charge. Its steep 3% withdrawal fee meant that investors were unlikely to make a profit unless. They recommended other investors. He called such a referral approach “, especially concerning” because it was similar to previous crypto scams.
Capuci faces charges of conspiracy to commit wire fraud, conspiracy to engage in international money laundering. Conspiracy to commit securities fraud, according to the DOJ. He faces a possible total prison sentence of 45 years. If convicted on all counts. The inquiry is still ongoing, and all will be revealed in due time.
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