The United States Securities and Exchange Commission has stopped the ongoing $62 million global crypto mining and trading scheme with the Department of Justice (DoJ)indicting the CEO and founder of the scheme.
Available reports revealed that if found guilty of all charges, the CEO of the scheme faces a penalty of a maximum of 45 years in prison.
SEC Burst Global Crypto Fraud
The SEC announced that it has tracked down a fraudulent scheme designed to fleece unsuspecting victims of their funds. This illicit crime involves mining and trading cryptocurrencies worth $62 million targeted at the global marketplace.
The firm, MCC International and its founders, Luis Carlos Capuci Jnr and Emerson Souza Pires, alongside other entities under their custody, was charged by the SEC on Friday. Furthermore, the charges are said to be labeled against them in connection with providing unregistered offerings and the fraudulent sales of investment packages to a large number of investors.
According to the SEC, it has been on the trail of the companies and its associates since January 2018, when investors were promised huge returns in BTC. However, MCC later requested that investors withdraw their investment funds in tokens later revealed to be “Capital Coin” or CPTL, the company’s token.
Department of Justice Indicts Founder
The United States Department of Justice also carried out its independent review of the case. It later concluded that both the CEO and MCC had been indicted in a large-scale $62 million global crypto fraud.
According to the statement from the DoJ, Capuci misled unsuspecting investors about his company’s investment program by luring them to invest in the mining package offered by MCC. The DoJ charged the CEO and his co-conspirators for giving out false information to interested investors about having a global network of crypto mining companies capable of generating profits and giving investors a guaranteed return on their funds.
MCC’s token is also touted as a decentralized digital asset similar to that of Bitcoin, Ethereum and others and stabilized by a reserve backed by the biggest crypto mining conglomerates in the world, according to the statement of the DoJ.
However, a cursory look into the operations of MCC revealed that the CEO and his associates operate a fraudulent scheme with the intent to defraud investors who have no idea of what is at stake by investing in the company.
Moreover, the DoJ also elaborates on the further drive by the company to sell its trading bot to the public as an additional investment vehicle to provide passive income to investors in the cryptocurrency market.
By recruiting promoters and influencers to promote MCC’s investment packages without a specific company location, the MCC has directly concealed the direction of the funds and the pattern of the fund’s movement to foreign-held crypto exchanges.
The Justice Department concludes by adding that Capuci and his company are charged with conspiracy and intent to carry out wire fraud and illicit cross-border money transfer.