Mining Capital Coin CEO Indicted for Allegedly Running a Cryptocurrency Pyramid Scheme

American's Justice Department announced Friday that the CEO of Mining Capital Coin, "a purported cryptocurrency mining and investment platform," has been indicted "for allegedly orchestrating a $62 million global investment fraud scheme."

According to a US Securities and Exchange Commission complaint filed last month, Capuci sold mining packages to more than 60,000 investors. The group promised daily returns of 1% for up to a year. According to the DOJ's sttement,Capuci said that revenue was stabilizing the company's coin, Capital Coin. The DOJ alleges that Capuci diverted the funds to his own wallet. According to the SEC complaint, the mining packages and initiation fees netted the company at least $8.1 million, which was used to fund a lavish lifestyle, including a yacht and real estate. According to the release, Capuci claimed the Trading Bots could do thousands of trades per second and provide daily returns. He could face up to 45 years in prison if convicted.

One U.S. attorney warned in the statement, "As with any emerging market, those who invest in cryptocurrency must beware of profit-making opportunities that appear too good to be true." The statement also argues that 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."

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