The CEO of Mining Capital Coin, a cryptocurrency mining and investment platform, has been charged with orchestrating a $62 million investment fraud scheme.
According to a May 6 Department of Justice news release, Luiz Capuci, 44, of Port St. Lucie, Fla., was indicted on charges of conspiracy to commit wire fraud, conspiracy to commit securities fraud and conspiracy to commit international money laundering. The case alleges that he lied to investors about an investment program, claiming he and his partners offered “mining packages” to investors to generate new cryptocurrency.
“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,” Assistant Attorney General Kenneth A. Polite Jr., of the Justice Department’s Criminal Division, said in the release. “The department is committed to following the money, whether physical or digital, to expose criminal schemes, hold these fraudsters accountable and protect investors.”
According to the news release, Capuci also touted his company’s own cryptocurrency, Capital Coin, as an autonomous organization “stabilized by revenue from the biggest cryptocurrency mining operation in the world.” However, instead of using investors’ funds to mine new cryptocurrency as he promised, he reportedly diverted the funds to cryptocurrency wallets under his control.
“This office is committed to protecting consumers from unscrupulous fraudsters seeking to capitalize on the relative novelty of digital currency,” U.S. Attorney Juan Antonio Gonzalez of the Southern District of Florida said in the release. “As with any emerging market, those who invest in cryptocurrency must beware of profit-making opportunities that appear too good to be true.”
If convicted on all counts, Capuci faces a maximum of 45 years in prison. The FBI and Department of Homeland Security Miami field offices are investigating the case, the release stated.
