US authorities charge Mining Capital Coin CEO with $62 million fraud

Port St. Lucie, Florida resident Luis Capuchi Jr. has been named in a $62 million fraud case, as stated on the DOJ website.

According to the agency, the man was the chief executive and founder of Mining Capital Coin (MCC). Authorities say he misled investors about cryptocurrency mining and the company’s investment program.

According to the agency’s release, Capuchi and his associates enticed clients with claims of high returns and guaranteed profits from purchasing the so-called ‘mining packages’. He also promoted the MCC token, linked to DAO, and trading bots.

The Justice Department contends that Capuchi used investors’ funds for personal purposes. In the government’s view, the MCC token scheme was a financial pyramid, with promoters and affiliates receiving rewards for recruiting new participants.

Capuchi has been charged with conspiracy to commit money laundering and fraud. He faces up to 45 years in prison.

Earlier, the U.S. Securities and Exchange Commission expanded the list of ‘misleading’ companies tied to digital assets. The list serves informational purposes and does not imply that the firms named have violated the law.

As reported in February 2022, a federal grand jury in San Diego charged BitConnect founder Satish Kumbhani with involvement in a $2.4 billion Ponzi scheme.

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