The company operated a pyramid scheme in which funds were diverted to the accounts of the managers, who used the capital to support the opposite of Resistance, it is a threshold that crypto’s price doesn’t fall below. their tastes and pleasures. Authorities warn that this type of scam a scheme that is designed to dupe people out of cash or crypto. is very common, and invite potential investors to be very attentive to detect the warning signs.
El U.S. Department of Justice (DoJ) filed charges against Luiz Capuci Jr, who operated as the CEO of cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. and investment companyMining a process where blocks are added to a blockchain, verifying transactions. It is also the process through which new bitcoin or some altcoins are created. Capital capital is most commonly defined as the large sum of money you would use to invest. Coin, who is accused of perpetrating fraud against thousands of investors, who were collectively defrauded of at least $62 million in alleged business deals.
The CEO of Mining Capital Coin a coin can refer to a cryptocurrency that can operate independently or to a single unit of such cryptocurrency. en EE UU
In a press release issued by the DoJ last Friday, the accusations against Capuci come in the wake of the diversion of user funds to his personal accounts, which he captured after promoting the investment in allegedly “bots de trading” which would perform thousands of transactions per second and generate profits for the people who put their capital into the company.
El DoJ alleged that Capuci operated a kind of pyramid scheme, in which the investment capitalized by new recruits was intended to pay off older recruits, motivating them to bring in more people in exchange for rewards such as iPads, Apple Watchs and even offering a luxurious Ferrari to the member who achieved the best results for the benefit of the company.
After capturing the capital, Capuci diverted the funds to his private wallets and those of accomplices, acquiring luxury properties and supporting lavish expenses to maintain a lifestyle in which they flaunted their financial bonanza to attract potential victims.
In this regard, the Assistant Attorney General responsible for the case, Kenneth A. Polite, Jr, commented:
“Cryptocurrency-based fraud undermines financial markets around the world as bad actors defraud investors and limit the ability of legitimate entrepreneurs to innovate within this emerging space… The depatment is committed to following the money, whether physical or digital, to expose criminal schemes, hold these fraudsters accountable, and protect investors.”
As such,Mining Capital Coin under the direction of Capuci offered an alleged investment scheme that contemplated different aspects. A complaint filed with the U.S. Securities and Exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. Commission (SEC) details that the forte of the proposition was cryptocurrency packages with daily returns of 1%, which were paid weekly through the same platform.
Initially, those responsible for Mining Capital Coin assured that the profits would be in Bitcoin, but then introduced changes detrimental to investors, requiring for example that withdrawals be made in Capital Coin, the company’s native cryptocurrency that had no commercial value outside the platform. Another red flag came when the supposed annual memberships expired, as errors appeared for processing applications, and in most cases victims were asked to buy more investment packages in order not to lose the capital trapped on the platform.
El esquema fraudulento operado porMining Capital Coin was operational since at least January 2018, so it is estimated that there were more than 65,000 victims affected. Authorities warn that this modality is quite common, so they alert potential stakeholders to consider the warning signs before investing their capital in the expectation that they will be met with such promises that on the surface are very good.
As for Capuci, he is currently facing charges of wire fraud, securities fraud, international money laundering and other crimes, for which he could serve up to 45 years in prison if the court finds him guilty of all charges against him.
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Version by Angel Di Matteo / DiarioBitcoin
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