The CEO and founder of Mining Capital Coin is being accused by the Justice Department of scamming a Bonzi Pyramid scheme that allegedly raised $62 million.
The CEO and founder of Mining Capital Coin, Luis Capucci Jr., is being charged by the US Department of Justice for defrauding a $62 million global investment. He is the latest crypto executive to face such an indictment.
Mining Capital Coin CEO and Founder Accused of Fraud by DOJ
Through his company, Luis Capucci Jr. convinced investors to buy Mining Packs, a global network of mining machines that promised a certain return on investment every week. But instead of using investor funds to mine cryptocurrencies, as promised, the Justice Department accuses Luis Capucci Jr. of transferring funds to his own wallets.
Bonzi pyramid scheme that reportedly raised $62 million
Another MCC product, “trading bots”, also operated under false pretenses. Luis Capucci Jr. claimed that these bots ran “at a very high frequency capable of processing thousands of transactions per second”and promised investors daily profits. “As in the case of mining packages, Luis Capucci Jr. developed a fraudulent scheme with trading bots and did not use them to generate income for investors, but redirected funds to himself – to the same accomplices,” the message says. Department of Justice in its statement.
The MSS seemed to have all the signals of the Bonzi pyramid. Luis Capucci Jr hired a lot of people to attract investors. In return, he promised his people many gifts – Apple Watches, iPads, and even luxury cars. Today, the local FBI office in Miami is investigating. If Luis Capucci Jr. is found guilty, he faces up to 45 years in prison.