The company operated a pyramid scheme in which funds were transferred to the accounts of managers, who used the capital to support their own tastes and pleasures. The authorities warn that this type of scam is very common, and they are calling on potential investors to be extra vigilant until they spot the warning signs.

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The US Department of Justice (DoJ) Charges filed against Louise Capucci Jr., who was the CEO of a crypto mining and investment company coin mining capital, which they accuse of committing fraud against thousands of investors, who together embezzled at least $62 million in alleged trade bids.

CEO is located Capital Coins for Mining in the United States of America

In a press release published by Ministry of Justice Last Friday, the accusations against Capuci came after funds were transferred from users to their personal accounts, which he seized after promoting an alleged investment in “bots de trading”which will carry out thousands of transactions per second and bring profits to the people who allocate their capital to the company.

The Ministry of Justice Capuci allegedly ran a kind of pyramid scheme, where the investment headed by newcomers was intended to pay the elderly, incentivizing them to bring in more people in exchange for rewards such as iPads and Apple Watchesand even provide luxury Ferrari For the member who achieved the best results in favor of the company.

After capturing the capital, Capucci transferred the money to his own wallets and the wallets of some of his accomplices, through which they acquired luxury properties and subsidized the exorbitant expenditures of maintaining a lifestyle in which they demonstrated their financial wealth to attract potential victims.

In this regard, the Assistant Attorney General in charge of the case, Kenneth A. Bullitt Junior:

“Cryptocurrency-based fraud is undermining financial markets around the world as bad actors defraud investors and limit the ability of legitimate entrepreneurs to innovate in this emerging space… Management is committed to pursuing funds, whether physical or digital, to expose criminal schemes and hold them accountable.” These scammers are protecting investors.”

Warning signs

as such, Capital Coins for Mining Under Capuci’s direction, I offered a hypothetical investment plan that contemplated various edges. Submit a complaint to US Securities and Exchange Commission (SEC) Details show that the strength of the offer was crypto mining packages with daily returns of 1%, which are paid weekly through the same platform.

In the beginning, those responsible for Capital Coins for Mining They assured that the profits will be in bitcoin, But then they introduced changes harmful to investors, requiring for example making withdrawals in capital currency, The company’s original cryptocurrency which has no trading value outside the platform. Another warning sign appeared when the supposed annual membership expired, as errors appeared in the processing of applications, and in most cases victims were asked to purchase more investment packages so as not to lose the capital trapped in the platform.

The fraud scheme you run Capital Coins for Mining It has been operating at least since January 2018, so it is estimated that there are more than 65,000 victims affected. The authorities caution that this method is very common, so they are alerting potential stakeholders to consider the warning signs before investing their capital, waiting for those promises to be fulfilled, which sounds very good.

As for Capucci, he is currently facing charges of electronic fraud, securities fraud, international money laundering and other crimes, for which he could serve a maximum of 45 years in prison if a court finds him guilty on all charges.

Suggestions for reading

Fuente: DecryptAnd Justice.gov

Angel Di Matteo version / Daily Bitcoin

picture Unsplash

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