The defendants also allegedly misrepresented to investors that the weekly returns were generated from MCC’s business operations including cryptocurrency mining, foreign exchange, and trading of crypto assets and stocks. The defendants claimed using arbitrage trading and semi-automatic trading.
MCC and its founders falsely claimed that the weekly profits were the result of “profit-sharing” from their business operations.
Additionally, the SEC alleged that the defendants first promised MCC investors that their weekly returns would be in Bitcoin. However, they later required investors to withdraw their investments in MCC’s tokens called Capital Coin (CPTL).
Furthermore, MCC and its founders allegedly required investors to redeem CPTL tokens on Bitchain, a fake crypto asset trading platform created and managed by Capuci. The defendants made it difficult for investors to cash out their investments and returns.
Moreover, MCC investors seeking to redeem their investments were forced to pay another $100 transaction fee. They were also forced to either increase their initial investment by purchasing another mining package or forfeit their investment.
