But instead, according to the DOJ, Capuci redirected funds to his own wallets with cryptocurrencies. The MCC earned at least $ 8.1 million from the sale of mining packages and $ 3.2 million in initiation fees, funding a lavish lifestyle, including Lamborghinis, yachts and real estate, according to a SEC lawsuit.
“Cryptocurrency-based fraud is undermining financial markets around the world because bad actors deceive investors and limit the ability of legitimate entrepreneurs to innovate within this emerging space,” said Assistant Attorney General Kenneth A. Polite, a junior in the Justice Department’s Justice Department.
CNN Business contacted Capucia for comment.
Capuci also advertised MCC’s own cryptocurrency, “Capital Coin,” according to a DOJ statement. The statement cites another bogus avenue of MCC investment, “Trading Bots,” which Capuci claimed were operating at “very high frequency, as they are able to do thousands of trades per second.” Capuci claimed that Trading Bots would provide daily returns, according to a DOJ statement.
Capuci also reportedly ran a pyramid scheme, according to the DOJ, recruiting promoters to sell mining packages and promising them gifts ranging from Apple watches to Capuci’s personal Ferrari, according to a press release.
The DOJ has accused Capuci of conspiracy to commit wire fraud, conspiracy to commit securities fraud and conspiracy to commit international money laundering. He could face 45 years in prison if convicted on all counts. The Miami Field Office in Miami and Homeland Security Investigations are investigating the case.