Posts Tagged: scheme

Mining Capital Coin CEO indicted in $62 million crypto fraud scheme

Mining Capital Coin CEO and founder Luiz Capuci Jr. was — in an indictment unsealed yesterday — accused by the DOJ of allegedly running a $ 62 million global investment fraud scheme. He's the latest of severalcrypto company heads who have recently been similarly charged.

Through his company, Capuci convinced investors to purchase “Mining Packages," a global network of cryptocurrency mines that promised a certain return on investment every week. But instead of using investors’ funds to mine cryptocurrency as he promised, the DOJ alleges that Capuci diverted the funds to his own cryptocurrency wallets. Another MCC product known as “Trading Bots” operated under the same false pretenses. Capuci claimed that the bots operated in “very high frequency, being able to do thousands of trades per second” and promised investors daily returns.

“As he did with the Mining Packages, however, Capuci allegedly operated an investment fraud scheme with the Trading Bots and was not, as he promised, using MCC Trading Bots to generate income for investors, but instead was diverting the funds to himself and co-conspirators,” wrote the DOJ in its indictment.

MCC seemed to have all the workings of a pyramid scheme. Capuci recruited affiliates and promoters to lure investors. In return, he promised the promoters a number of lavish gifts, including Apple watches, iPads and luxury vehicles.

Currently the FBI’s Miami Field Office is investigating the case. The DOJ has charged Capuci, who is from Port St. Lucie, Florida, with conspiracy to commit wire fraud, conspiracy to commit securities fraud and conspiracy to commit international money laundering. If found guilty, he faces a maximum sentence of 45 years.

In a review of the cryptocurrency mining platform, crypto blogger Peter Obi noted that the combination of MCC’s $ 50 monthly fee for membership and its steep 3% withdrawal fee meant that investors were unlikely to make a profit unless they referred other investors. He pointed out that such a referral process was “particularly worrying” because it was consistent with other past crypto scams.

Indeed, a number of crypto leaders have been accused by authorities of running Ponzi schemes in recent years. Earlier this year the DOJ indicted Bitconnect founder Satishkumar Kurjibhai Kumbhani for allegedly running a $ 2 billion Ponzi scheme — believed to be the largest virtual currency pyramid scheme in history.

Capuci never registered his company with the SEC. The agency today issued a fraud alert for the company. According to the SEC press release, Capuci and his associates successfully convinced 65,535 investors to purchase mining packages worldwide and promised daily returns of one percent, paid weekly for over a year. In total, the group netted $ 8.1 million from the sale of the mining packages and $ 3.2 million from initiation fees.

Engadget is a web magazine with obsessive daily coverage of everything new in gadgets and consumer electronics

Android ad fraud scheme drained users’ batteries and data

BuzzFeed News has confirmed a massive ad fraud scheme, which was originally uncovered by at least two fraud detection firms, that drained users' batteries and data. The scheme begins by hijacking the in-app advertisements of developers using Twitter'…
Engadget RSS Feed

Google Maps has an improved color scheme and new icons for easier navigation

Google Maps has a fresh coat of paint that makes navigation even easier. The driving, navigation, transit and explore maps now highlight relevant information in a clearer way. For example, gas stations will be better marked for navigation as will train stations for transit and so on. An updated color scheme and new icons will […]

Come comment on this article: Google Maps has an improved color scheme and new icons for easier navigation

Visit TalkAndroid


TalkAndroid

Set the lighting scheme that matches your daily routine with this connected light

Philips Lighting has introduced Hue white ambiance, a connected light that can be adjusted throughout the day to increase your energy and improve your sleep. Users can set their lighting to match their daily activities.

The post Set the lighting scheme that matches your daily routine with this connected light appeared first on Digital Trends.

Cool Tech–Digital Trends