{"id":64239,"date":"2022-05-09T09:01:39","date_gmt":"2022-05-09T09:01:39","guid":{"rendered":"https:\/\/www.cryptocabaret.com\/?p=64239"},"modified":"2022-05-09T09:01:39","modified_gmt":"2022-05-09T09:01:39","slug":"sec-halts-62-million-crypto-mining-trading-scheme-doj-indicts-founder","status":"publish","type":"post","link":"https:\/\/www.cryptocabaret.com\/?p=64239","title":{"rendered":"SEC Halts $62 Million Crypto Mining, Trading Scheme \u2014 DOJ Indicts Founder"},"content":{"rendered":"

\"SEC<\/p>\n

The U.S. Securities and Exchange Commission (SEC) has halted a $62 million global cryptocurrency trading and mining scheme and the Department of Justice (DOJ) has indicted its CEO and founder. If convicted of all counts, he faces a maximum total penalty of 45 years in prison, the Justice Department.<\/strong><\/p>\n

SEC Halts $62M Global Cryptocurrency Fraud Scheme<\/h2>\n

The US Securities and Exchange Commission (SEC) announced Friday that it has halted a fraudulent crypto mining and trading scheme.<\/p>\n

The SEC charged MCC International (aka Mining Capital Coin), its founders (Luiz Carlos Capuci Jr. and Emerson Souza Pires), and two entities controlled by them. The charges are \u201cin connection with the unregistered offerings and fraudulent sales of investment plans called mining packages to thousands of investors,\u201d the agency noted.<\/p>\n

The securities watchdog detailed that since at least January 2018:<\/p>\n

\n

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.<\/p>\n<\/blockquote>\n

The complaint also alleges that MCC investors were initially promised returns in bitcoin (BTC<\/a>). However, the defendants later \u201crequired investors to withdraw their investments in tokens called capital coin (CPTL), which was MCC\u2019s own token.\u201d<\/p>\n

DOJ Charges MCC\u2019s Founder and CEO<\/h2>\n

The U.S. Department of Justice (DOJ) also independently announced Friday that Capuci, the founder and CEO of MCC, a purported cryptocurrency mining and investment platform, has been indicted in a $62 million global cryptocurrency fraud scheme.<\/p>\n

Capuci of Port St. Lucie, Florida, misled investors about his platform\u2019s cryptocurrency mining and investment program, luring them to invest in MCC\u2019s \u201cmining packages,\u201d the DOJ described. He and his co-conspirators claimed that MCC had an international network of cryptocurrency mining machines that could generate \u201csubstantial profits and guaranteed returns\u201d for investors.<\/p>\n

They also touted MCC\u2019s own cryptocurrency as a purported decentralized autonomous organization that was \u201cstabilized by revenue from the biggest cryptocurrency mining operation in the world,\u201d the DOJ added, noting:<\/p>\n

\n

However, Capuci operated a fraudulent investment scheme and did not use investors\u2019 funds to mine new cryptocurrency, as promised, but instead diverted the funds to cryptocurrency wallets under his control.<\/p>\n<\/blockquote>\n

The indictment further alleges that Capuci touted and fraudulently marketed MCC\u2019s purported \u201ctrading bots\u201d as an additional investment mechanism to help investors profit in the cryptocurrency market.<\/p>\n

The MCC founder also allegedly recruited promoters and affiliates to promote MCC in a pyramid scheme, the DOJ said, adding that he further concealed the location and control of the fraud proceeds by laundering the funds through various foreign-based cryptocurrency exchanges. The Justice Department added:<\/p>\n

\n

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.<\/p>\n<\/blockquote>\n

What do you think about this case? Let us know in the comments section below.<\/strong><\/em><\/p>\n

Powered by WPeMatico<\/a><\/small><\/p>\n","protected":false},"excerpt":{"rendered":"

The U.S. Securities and Exchange Commission (SEC) has halted a $62 million global cryptocurrency trading and mining scheme and the Department of Justice (DOJ) has indicted its CEO and founder. If convicted of all counts, he faces a maximum total penalty of 45 years in prison, the Justice Department. SEC Halts $62M Global Cryptocurrency Fraud […]<\/p>\n","protected":false},"author":2,"featured_media":64240,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[309],"tags":[],"class_list":["post-64239","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=\/wp\/v2\/posts\/64239","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=64239"}],"version-history":[{"count":0,"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=\/wp\/v2\/posts\/64239\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=\/wp\/v2\/media\/64240"}],"wp:attachment":[{"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=64239"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=64239"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=64239"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}