Luiz Carlos Capuci Jr., the co-founder, and CEO of Mining Capital Coin has been charged with wire and securities fraud.
Capuci (also known as Jr. Caputti, Junior Caputti, and Junior Capuci) and Emerson Souza Pires co-founded Mining Capital Coin in 2017.
On April 28th, the Department of Justice sealed Caputti’s indictment. Mining Capital Coin is accused of being a $62 million Ponzi scam, accordQing to the indictment.
Capuci (right), who has both Brazilian and American citizenship, lived in Florida until recently.
Caputti fled to Brazil after receiving a subpoena as part of a concurrent SEC probe.
Capuci’s charge was unsealed on May 5th, with the DOJ adding that Capuci is believed to be in Brazil.
Capuci was expected to go to the United States on a trip from Brazil to Miami, Florida on or around May 2, 2022.
Capuci was not allowed to board the plane.
The SEC intends to unseal a civil case against Capuci on or around May 5, 2022.
Capuci will be notified of the indictment in this matter at this time.
Based on earlier assertions by Capuci, the Government expects that the dual Brazilian-American citizen will remain overseas to avoid detection by US authorities.
Capuci is aware that Brazilian nationals are not extradited.
The government claims that unsealing the indictment is in the interests of justice because it would inform victims of the accusations in the indictment and assist identify and prevent future victims.
On May 5th, the court granted the DOJ’s application to unseal.
Mining Capital Coin was a $62 million Ponzi scam, according to Capuci’s indictment.
MCC was founded by LUIZ CARLOS CAPUCI JR. and CC-I in late 2017.
CAPUCI and CC-I aggressively pushed MCC to potential investors as a rich investment opportunity from the start.
Emerson Pires, Capuci’s accomplice in crime, is referred to as “CC-1.”
MCC’s stated investment programs including cryptocurrency mining, cryptocurrency trading, and other investment activity, including foreign exchange trading, were erroneously and fraudulently promoted by CAPUCI and CC-I.
Capuci, CC-1, and MCC collected roughly $62 million from ordinary investors throughout the world via deception and fraud.
MLM crypto Ponzi schemes’ “go-to” ruses include mining and trading.
Capuci claimed that MCC had “technological mining facilities with the greatest equipment situated in the United States,” even though Capuci knew MCC did not have such facilities, much alone using the best mining equipment in the country.
Any MLM firm that claims to participate in trading and/or mining but isn’t registered with financial regulators is a Ponzi scam, according to BehindMLM.
We frequently remind readers that social media is not a replacement for submitting financial disclosures with authorities, as required by law.
Mining Capital Coin is a great example of why this is so.
Luiz Carlos Capuci Jr. and CC-1 used social media to encourage investors to invest in MCC’s supposed network of mining equipment.
MCC uploaded a video on its mining operations to the internet via a social media site on or about December 26, 2018.
Capuci shot a chamber with what looked to be multiple mining devices in action during the video.
“You guys like the noise?” Capuci said. It’s mining, mining, mining to make money for you.”
“I didn’t spend money to travel to Africa, Nigeria, or anything, to undertake a Ponzi scheme,” he later said, falsely claiming to have seven additional offices where MCC also undertook mining.
MCC released (another) video on or around December 26, 2018.
CC-1 stated in the video that MCC’s mining machines “were mining right now, alright, all the time for you… MCC works with investments, money, and your money to make your money work for you.”
MCC was not operating a vast network of bitcoin mining devices to produce profits for investors, contrary to Capuci’s promises to investors.
Instead, Capuci was running an illegal investment scam in which he was moving investors’ money to cryptocurrency wallets and bank accounts under his control, rather than investing it in MCC’s operations as he had misrepresented to his investors.
Capuci made a variety of claims to distract attention from the fact that he was committing securities fraud because MCC was a Ponzi scheme: • “that MCC had partnered with the World Bank to secure an investment in eco-friendly power generators and used wind turbines to power its mining facility” (legitimacy via association); • “that MCC had submitted applications to have Capital Coin… listed on at least one prominent cryptocurrency exchange” (legitimacy via association); (legitimacy via association and also meaningless concerning securities fraud)
• “that MCC had a collaboration with the Clinton Foundation… so that MCC could assist provide schools to African children and share MCC’s triumphs” (legitimacy via association and using charity to justify fraud)
• “falsely and fraudulently portraying to investors that he was a former FBI agent” (legitimacy by association) • “falsely indicated that MCC was the “world’s largest cryptocurrency mining operation”
Of course, none of these statements were accurate. Mining Capital Coin’s marketing machine was made up of fabrications.
The Ponzi scam of Mining City Capital involved the marketing of mining packages and trading bots.
Packages for mining
MCC promised investors a 52-week return on their Mining Package investments, which were allegedly obtained via cryptocurrency mining.
Capuci and CC-1 erroneously and fraudulently sold and advertised MCC’s “Mining Packages” as a lucrative investment opportunity to partake in the supposed mining earnings.
Capuci guaranteed investors a weekly return based on the amount of the package they purchased, which would be transferred automatically and bi-monthly to their bitcoin wallets.
Capuci marketed the Mining Packages as a financial investment in a joint venture with other investors, with the reasonable expectation of return from MCC’s efforts.
As a result, the Mining Packages qualified as “securities” under the laws and regulations regulating the offer and sale of securities in the United States, necessitating SEC registration.
Capuci never filed MCC’s investment program with the SEC as an offering and sale of securities, nor did it have a legal exemption from this need.
Packages for Bot Trading
Mining Capital Coin was evaluated by BehindMLM in mid-2018. Mining Capital Coin represented external money gained through trade and other ways at the time, but only Mining Packages were available.
In 2019, that changed.
Capuci and CC-1 actively promoted and erroneously and fraudulently sold MCC’s stated “Trading Bots” as an alternative investment option for investors beginning in or around 2019.
Capuci and CC-1 deceived the public by claiming that MCC provided, owned, and managed Trading Bots that might create big profits for potential cryptocurrency traders.
Trading bots on the market at the time, according to Capuci, were not producing “good outcomes.”
Capuci, on the other hand, said that MCC collaborated with “leading software engineers in Asia, Russia, and the United States to construct an upgraded version of Trading Bot[s] that [were] tested using never-before-seen technology.”
Capuci further claimed that MCC’s Trading Bots… would provide daily returns to investors ranging from 1% to 3.5 percent every day.
Instead, Capuci was defrauding investors by moving monies to cryptocurrency wallets and financial accounts under his control, which he used for himself and his co-conspirators.
Exit-scam using Mining Capital Coin
Mining Capital Coin launched its shitcoin exit scam shortly after announcing its trading bot investment ambitions.
MCC stopped paying investors’ profits in bitcoin in 2019, which was the original strategy.
Instead, MCC began paying investors using Capital Coin, the company’s own cryptocurrency.
Then there was the KYC exit scam…
Capuci also advised investors that to participate in a “swap” of Capital Coin for bitcoin, they would have to pay a $100 “Know Your Customer” charge for each MCC account in or around 2020.
This was done through the “Bitcoin Exchange,” an internal MCC exchange that Capuci claimed he didn’t manage.
Capuci falsely claimed that Bitchain Exchanges was unrelated to MCC when, in reality, Capuci had control over Bitchain Exchanges, as evidenced by Capuci’s registration of the Bitchain Exchange website.
Investors were left with a useless token once Capital Coin was created. The instant Mining Capital Coin ceased paying out in bitcoin, it crashed.
The Ponzi scam was eventually shut down.
Charges of Crime
Capuci has been charged with three counts of fraud for his role in the alleged $62 million Ponzi scheme Mining Capital Coin: 1. conspiracy to commit wire fraud; 2. conspiracy to commit securities fraud; and 3. conspiracy to engage international money laundering.
The DOJ is requesting that “some property” in which Capuci has an interest be forfeited.
Capuci faces 45 years in jail if convicted on all three counts.
I’ll leave you with two last observations. The first is that Capuci returning to Brazil implies we’ll be dealing with another Carlos Wanzeler.
While Brazilian law took some time to catch up, Wanzeler’s strategy did not work out.
Wanzeler lost his Brazilian citizenship in 2018 and was arrested in 2020 at the request of the US government.
Wanzeler is said to be facing extradition procedures.
If the DOJ has sought to unseal the indictment, I assume they’ve given it some thought. At this point, I can’t tell for sure what the plan is (following on from Wanzeler this is very much uncharted territory).
The second idea is about Capuci’s accomplice, Emerson Pires.
Mining Capital Coin was reviewed by BehindMLM in May 2018, at least seven months before it crashed.
Here’s what I determined four years ago after researching and analyzing Mining Capital Coin’s business model:
First and foremost, if Mining Capital Coin is situated in Massachusetts, they must register its passive investment offer with the Securities and Exchange Commission (SEC).
Mining Capital Coin, according to the SEC’s Edgar database, is not registered.
This suggests that Mining Capital Coin is committing securities fraud at the very least.
Part of this is due to the strong likelihood that Mining Capital Coin is merely moving freshly invested cash around to pay off previous investors.
Emerson Pires appeared in the comments area in August 2018 to defend his Ponzi scam.
These comments may be seen in any Ponzi scam. BehindMLM is a popular review site.
Pires would reemerge with EmpiresX in June 2021, after allegedly defrauding consumers of $62 million with Capuci.
Pires teamed up with new partners for EmpiresX, but he continued to run the same MLM crypto Ponzi fraud.
The Ponzi scam in question crashed in October 2021. A data breach means that consumers have lost over $60 million yet again.
Pires, like Capuci, just left Florida for Brazil, according to the SEC. He’s not likely to return voluntarily either.
It’s unclear whether Pires has been charged or is facing charges. It’s also unclear whether he’ll face more charges related to EmpiresX.
In their respective news statements, the DOJ and SEC both acknowledge that the case is still under investigation.
20th of May, 2022 – Luiz Capuci’s criminal case docket shows that he is a sought fugitive as of May 16th.