SEC Halts $62 Million Crypto Mining, Trading Scheme — DOJ Indicts Founder – Regulation Bitcoin News


The U.S. Securities and Exchange Commission (SEC) has shut down a $ 62 million global cryptocurrency trading and mining scheme, and the Department of Justice (DOJ) has accused its CEO and founder. If convicted of all crimes, he faces a maximum total sentence of 45 years in prison, according to the Justice Department.

The SEC halts the $ 62 million global cryptocurrency fraud scheme

The U.S. Securities and Exchange Commission (SEC) announced on Friday that it has stopped a fraudulent mining and cryptocurrency trading scheme.

The SEC charged MCC International (also known as Mining Capital Coin), its founders (Luiz Carlos Capuci Jr. and Emerson Souza Pires) and two entities controlled by them. The charges are “related to unregistered bids and fraudulent sales of investment plans called mining packages to thousands of investors,” the agency said.

The securities control body detailed that, at least since January 2018:

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

The complaint also alleges that MCC investors initially promised returns on bitcoins (BTC). However, the defendants later “demanded that the investors withdraw their investments in tokens called Capital Currency (CPTL), which was MCC’s own listing.”

DOJ charges MCC 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. dollars.

Port St. Hoods Lucie, Florida, misled investors about her platform’s cryptocurrency investment and mining program by luring them to invest 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 “substantial profits and a guaranteed return” for investors.

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

However, Capuci operated a fraudulent investment scheme and did not use the funds of the investors to extract new cryptocurrencies, as promised, but diverted the funds to cryptocurrency portfolios under his control.

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

The MCC founder allegedly also recruited promoters and affiliates to promote MCC in a pyramid scheme, the DOJ said, adding that he further obscured the location and revenue control of the fraud by laundering funds through several foreign cryptocurrency exchanges. The Justice Department added:

Capuci is accused of conspiracy to commit telematic fraud, conspiracy to commit securities fraud and conspiracy to commit international money laundering. If convicted of all crimes, he faces a maximum total sentence of 45 years in prison.

Tags in this story

Bitcoin, Capital Currency, Crypto, Crypto Fraud, Cryptoponzi Scheme, Crypt Scam, Cryptographic Scheme, Cryptocurrency, DOJ, MCC, Mining Capital Currency, SEC

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

Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in the security of Bitcoin, open source systems, network effects, and the intersection of economics and cryptography.

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