A Florida-based Luiz Capuci Jr. has been fingered in a massive crypto fraud involving no less than $62 million. Capuci, who is the CEO of Mining Capital Coin, is being charged by the United States Department of Justice (DoJ).
While he’s allegedly the mastermind behind the massive crypto fraud, he’s also looking at a possible maximum sentence of up to 45 years. This is because he’s being charged on numerous counts of money laundering, securities fraud, and even wire fraud.
The $62 Million Crypto Fraud
Reports obtained from the DoJ claim that Capuci alongside some other players, swindled investors of $62 million altogether. But one might ask, how exactly they were able to carry out this massive crypto fraud.
According to the DoJ, Mining Capital Coin was initially telling investors that investments were being channeled into mining and trading. As a result, investors were reeled in on the promise of sustainable and massive returns due to the firm’s huge network of mining facilities. Furthermore, there were claims of highly sophisticated bots by Capuci, which he said were developed by the industry’s best hands. However, all these turned out to be entirely false.
As federal prosecutors say, Mining Capital Coin never for once did as they claimed. They never carried out any of the projects they promised, and it was all a pyramid scheme all along. Additionally, prosecutors also say that Capuci would always move the stolen funds to his personal crypto wallets.
As Efforts To Crack Down On Criminal Crypto Use Intensifies…
Meanwhile, the U.S. government is not backing down from its crackdown actions on such crypto fraud schemes as that of Mining Capital Coin. According to Kenneth Polite Jr., assistant attorney general for the criminal division at DoJ, the government is fully aware of the menace of crypto fraud schemes and how it affects the nascent market. The attorney then noted that the government will leave no stones unturned, as it continues to mitigate against financial fraud.
Meanwhile, a further confirmation of the government’s keen eye on the increasing fraud rate can be seen in a recent arrest. Just last week, a certain CEO of an anonymous South Korean exchange was arrested for spying for North Korea.
In a similar way, Satish Kumbhani of BitConnect is also presently facing a number of charges. This is after being indicted by a grand jury in late February.