Yet another cryptocurrency fraud has come to light. The US Department of Justice reported Friday, 6 May 2022, that Mining Capital Coin CEO and founder Luiz Capuci Jr. was charged with reportedly masterminding a $62 million global investment fraud scheme using his putative crypto mining and investment platform.
However, after being charged with a slew of offenses including wire fraud, money laundering, and securities fraud, Capuci faces a maximum jail sentence of 45 years.
Capuci and co-conspirators are accused of defrauding investors of $62 million by the US authorities. Mining Capital Coin claimed to have invested in cryptocurrency mining and trading, but that was not the case. He reassured investors that the company had a large network of mining operations that could deliver consistent profits.
Capuci also pitched investors on the company’s trading bots, stating that they were created by leading programmers from around the world.
According to federal authorities, Mining Capital Coin was a regular pyramid scheme. The cash collected from investors was never invested in any of the aforementioned projects. Capuci, according to federal authorities, transferred the stolen monies to his bitcoin wallets without fulfilling the company’s pledges.
According to Kenneth Polite Jr., associate attorney general for the criminal division of the United States Department of Justice, unlawful cryptocurrency schemes damage the young industry, and the agency is dedicated to combating financial crime.
The art of scamming cryptocurrency or vulnerability of being scammed?
Lack of regulation, rapidity of transactions, irreversibility of trades, and disguised identities are all positive qualities of the crypto world, according to the hype. Crypto fanatics believe that bypassing banks, regulators, and rules is the only way to improve finance. When it comes to your assets, however, faster and looser isn’t necessarily better. It’s a surefire way to have your money stolen from you.
The CEO of an unnamed South Korean bitcoin exchange was arrested last week on suspicion of spying for North Korea. Satish Kumbhani, the co-founder of BitConnect, was indicted by a grand jury in late February on several charges.
Crypto is all about moving money rapidly. It’s also at the heart of any well-planned fraud scheme. Cryptocurrency can also be moved swiftly and washed to prevent notice once obtained.