SEC Stops Crypto Mining, Trading System Worth $62 Million – DOJ Sues Founder – Regulation Bitcoin News

The US Securities and Exchange Commission (SEC) has halted a $62 million global cryptocurrency trading and mining program, and the Department of Justice (DOJ) has indicted its CEO and founder. If convicted on all charges, he faces a maximum sentence of 45 years in prison, according to the Justice Department.

SEC halts $62 million global cryptocurrency fraud scheme

The US Securities and Exchange Commission (SEC) announced on Friday that it has stopped a rogue crypto mining and trading scheme.

The SEC accused MCC International (aka Mining Capital Coin), its founders (Luiz Carlos Capuci Jr. and Emerson Souza Pires) and two companies they controlled. The charges are “related to the unregistered offerings and fraudulent sale of investment plans called mining packages to thousands of investors,” the agency noted.

The securities regulator stated that as of at least January 2018:

MCC, Capuci and Pires sold mining packages to 65,535 investors worldwide and promised daily returns of 1 percent with weekly payouts for up to 52 weeks.

The complaint also alleges that MCC investors were originally promised returns in Bitcoin (BTC). However, the defendants later “demanded investors to withdraw their investments in tokens called Capital Coin (CPTL), which were MCC’s own token.”

DOJ files charges against MCC’s founder and CEO

The U.S. Department of Justice (DOJ) also independently announced on Friday that Capuci, the founder and CEO of MCC, an alleged cryptocurrency mining and investment platform, has been charged with a $62 million global cryptocurrency fraud scheme.

Capuci, of Port St. Lucie, Fla., misled investors about his platform’s cryptocurrency mining and investment program and lured them into investing in MCC’s “mining packages,” the DOJ described. He and his co-conspirators claimed that MCC had an international network of cryptocurrency mining machines that could generate “significant profits and guaranteed returns” for investors.

They also touted MCC’s own cryptocurrency as a supposedly decentralized autonomous organization that was “stabilized by revenue from the largest cryptocurrency mining operation in the world,” the DOJ added, noting:

However, Capuci ran a fraudulent investment scheme and did not use investors’ funds to mine new cryptocurrencies as promised, instead diverting the funds to cryptocurrency wallets under his control.

The indictment further alleges that Capuci touted and fraudulently marketed MCC’s alleged “trading bots” as an additional investment mechanism to help investors profit in the cryptocurrency market.

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 cryptocurrency exchanges . The Justice Department added:

Capuci faces charges of conspiracy to commit wire fraud, conspiracy to commit securities fraud and conspiracy to commit international money laundering. If convicted on all charges, he faces a maximum sentence of 45 years in prison.

tags in this story

Bitcoin, Capital Coin, Crypto, Crypto Scam, Crypto Ponzi Scheme, Crypto Scam, Crypto Scheme, Cryptocurrency, DOJ, MCC, Mining Capital Coin, SEC

What do you think of this case? Let us know in the comments section below.

Kevin Helms

As an Austrian economics student, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the interface between economics and cryptography.

Photo credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer, or a solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service, or company. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

More Popular News

In case you missed it

Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers