US accuses CEO of leading $62 million crypto scam

Bitcoin cryptocurrency logo – Illustration: REUTERS

By page Engadget, through MCC Company, Mr. Luiz Capuci Jr. invited investors to buy “Mining Packages” – a global network of cryptocurrency mining pools – with the promise of weekly return on the investment.

But instead of using investors’ money to mine cryptocurrencies and pay them profits as promised, the US Justice Department accused Luiz Capuci Jr. had “pocketed” all their money.

MCC also has another product, Trading Bots – an automated trading app with a coin exchange – which is very popular and also works with scam offers like Mining Packages.

Mr. Capuci once claimed these bots can operate “with high frequency, performing thousands of transactions per second” and committed to bringing daily profits to investors.

“However, like what it did with Mining Packages, Capuci ran an investment scam with Trading Bots, and did not live up to its promise to use MCC’s Trading Bots to bring in investor income, he transferred money to himself and his accomplices,” the US Justice Department indictment reads.

Also according to US authorities, the MCC seems to have been run on a multi-level model. Capuci recruits distribution partners and advertising “decoys” to entice investors. He promised them luxury gifts like Apple smartwatches, iPads and luxury cars.

The US Federal Bureau of Investigation’s office in Miami is currently investigating the incident. The U.S. Department of Justice charged Capuci with conspiring to commit fraud using telecommunications or the Internet, conspiring to commit securities fraud, and colluding in international money laundering. If found guilty, he faces up to 45 years in prison.

According to crypto blogger Peter Obi, MCC’s method of charging a monthly membership fee of $50/person and a withdrawal fee of 3% makes it impossible for investors to make a profit without continuing to attract more investors. other subordinate investments.

Mr. Luiz Capuci Jr. is the latest character in a series of “strong” subjects related to fraud and investment fraud in the past time. Earlier this year, the US Department of Justice charged Bitconnect founder Satishkumar Kurjibhai Kumbhani with leading a $2 billion Ponzi scheme – the case is believed to be the largest multi-level virtual currency fraud. in history up to now.