The US Commodity Futures Trading Commission (CFTC) announced the outcome of a case against a South African company involved in crypto fraud on September 7.
The CFTC said a judge has issued a consent order against Mirror Trading International Proprietary Limited (MTI), holding the company liable for several types of fraud. The order also requires the company to compensate its many casualties.
According to the CFTC, MTI offered an investment opportunity where it promoted trading information software that used Bitcoin as its base currency.
However, according to the statement, the company and its CEO, Cornelius Johannes Steynberg, instead implemented a multi-level marketing program. MTI solicited Bitcoin from investors and in return promised them the chance to participate in an unregistered commodity pool. While that pool apparently existed, the trading activities did not use a proprietary “bot” or software program, contrary to the company’s claims. Instead, the company and its leader have either directly or indirectly embezzled money from pool participants.
The CFTC claims that MTI convinced investors to contribute a total of 29,421 BTC — an amount worth more than $1.7 billion at one point. The company accepted funds from 23,000 individuals in the US and thousands more worldwide.
Victims will receive a total of $1.7 billion
According to the latest court ruling, MTI must pay more than $1.7 billion in restitution to investors who fell victim to the fraud. The court order prohibits MIT from violating the Commodity Exchange Act (CEA); it additionally prohibits the company from trading on CFTC markets and imposes a registration ban on the company.
A default judgment against Steynberg in April required the executive to pay more than $1.7 billion in restitution, plus a civil fine of more than $1.7 billion. It is unclear whether the $1.7 billion MTI has to pay will affect Stenberg’s personal sentences.
MTI is currently in liquidation and the website is not operational. Other descriptions of the company suggest it paid its employees in Bitcoin, something the CFTC has not commented on aside from allegations of embezzled funds.
Mirror Trading International’s post to pay $1.7 billion in restitution to Bitcoin investment scam victims first appeared on CryptoSlate.