However as a substitute, the DOJ alleges, Capuci diverted the funds to his personal cryptocurrency wallets. MCC netted a minimum of $8.1 million from the sale of the mining packages and $3.2 million in initiation charges, which funded a lavish life-style, together with Lamborghinis, a yacht and actual property, based on the SEC criticism.
“Cryptocurrency-based fraud undermines monetary markets worldwide as unhealthy actors defraud buyers and limits the power of official entrepreneurs to innovate inside this rising area,” mentioned Assistant Lawyer Common Kenneth A. Well mannered, Jr. of the Justice Division’s Legal Division.
CNN Enterprise has reached out to Capuci for remark.
Capuci additionally marketed MCC’s personal cryptocurrency, “Capital Coin,” based on the DOJ press launch. The discharge alleges one other fraudulent MCC funding avenue, “Buying and selling Bots,” which Capuci claimed operated at “very excessive frequency, having the ability to do hundreds of trades per second.” Capuci claimed the Buying and selling Bots would supply each day returns, based on the DOJ launch.
Capuci additionally allegedly ran a pyramid scheme, based on the DOJ, recruiting promoters to promote the mining packages and promising them items starting from Apple watches to Capuci’s private Ferrari, the press launch says.
The DOJ charged Capuci with conspiracy to commit wire fraud, conspiracy to commit securities fraud, and conspiracy to commit worldwide cash laundering. He may withstand 45 years in jail if convicted of all counts. The FBI Miami area workplace and the Homeland Safety Investigations are investigating the case.