SEC Ceased $62 Million Global Cryptocurrency Trading and Mining Scheme

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The SEC announced MCC’s (Mining Capital Coin) fraudulent crypto mining and trading activities in the country. 

The MCC and its founders (Luiz Carlos Cappuci Jr. and Emerson Sounza Pires), and two entities controlled by them are charged by the agency with illegal crypto activities such as unregistered offerings for investors, fraudulent sales of mining packages for thousands of investors, and fake promises on Bitcoin returns. However, the defendants later “required investors to withdraw their investments in tokens called capital coin (CPTL), which was MCC’s own token.”

The MCC’s  fraudulent activities since 2018 stated by Watchdog are: ” MCC, Capuci, and Pires sold mining packages to 65,535 investors worldwide and promised daily returns of 1 percent, paid weekly, for a period of up to 52 weeks.”

DOJ Charges MCC’s Founder and CEO 

The Department Of Justice of the U.S also announced that the founder and CEO of MCC, Capuci for a purported crypto mining and investment platform. and has indicated a $62 million global currencies fraud scheme. 

The DOJ recorded that the MCC’s CEO has misled the investors about his platform’s cryptocurrency mining and investment program, provoking them to invest in MCC’s mining packages.

Adding to this, the DOJ has also noted they own a cryptocurrency as a purported decentralized autonomous organization, which was “stabilized by revenue from the biggest cryptocurrency mining operation in the world.” Noting:

“However, Capuci operated a fraudulent investment scheme and did not use investors’ funds to mine new cryptocurrency, as promised, but instead diverted the funds to cryptocurrency wallets under his control.” 

The CEO Capuci also fraudulently marketed MCC’s purported ‘trading bots’ as an additional investment mechanism to help investors profit in the crypto market. He also illegally recruited promoters and affiliates to promote MCC in a pyramid scheme. And concealed the location and control of the fraud proceeds by laundering the funds through various foreign-based crypto exchanges. 

The Justice department of the U.S stated:

“Capuci is charged with conspiracy to commit wire fraud, conspiracy to commit securities fraud, and conspiracy to commit international money laundering. If convicted of all counts, he faces a maximum total penalty of 45 years in prison.”