Mining Capital Coin CEO Indicted for Allegedly Running a Cryptocurrency Pyramid...

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American's Justice Department announced Friday that the CEO of Mining Capital Coin, "a purported cryptocurrency mining and investment platform," has been indicted "for allegedly orchestrating a $62 million global investment fraud scheme."

CNN reports:

According to a US Securities and Exchange Commission complaint filed last month, Capuci sold mining packages to more than 65,000 investors since at least January 2018. The group promised daily returns of 1% for up to a year, the SEC press release says. [Capuci apparently said that revenue stabilized the company's cryptocurrency, Capital Coin, according to the DOJ's sttement.] But instead, the DOJ alleges, Capuci diverted the funds to his own cryptocurrency wallets. MCC netted at least $8.1 million from the sale of the mining packages and $3.2 million in initiation fees, which funded a lavish lifestyle, including Lamborghinis, a yacht and real estate, according to the SEC complaint....

The release alleges another fraudulent MCC investment avenue, "Trading Bots," which Capuci claimed operated at "very high frequency, being able to do thousands of trades per second." Capuci claimed the Trading Bots would provide daily returns, according to the DOJ release. ["But instead was diverting the funds to himself and co-conspirators."] Capuci also allegedly ran a pyramid scheme, according to the DOJ, recruiting promoters to sell the mining packages and promising them gifts ranging from Apple watches to Capuci's personal Ferrari, the press release says. ["Capuci further concealed the location and control of the fraud proceeds obtained from investors by laundering the funds internationally through various foreign-based cryptocurrency exchanges."]

The DOJ charged Capuci with conspiracy to commit wire fraud, conspiracy to commit securities fraud, and conspiracy to commit international money laundering. He could face up to 45 years in prison if convicted of all counts.

One U.S. attorney warned in the statement, "As with any emerging market, those who invest in cryptocurrency must beware of profit-making opportunities that appear too good to be true."

The statement also argues that cryptocurrency-based fraud "undermines financial markets worldwide, as bad actors defraud investors, and limits the ability of legitimate entrepreneurs to innovate within this emerging space."

Thanks to Slashdot reader quonset for sharing the story!