Kevin Helms
An Austrian economics student, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the intersection of economics and cryptography.
US regulator charges South African MTI and its $ 1.7 billion fraud involving Bitcoin – Bitcoin News Regulation
The US Commodity Futures Trading Commission (CFTC) has charged Mirror Trading International (MTI) and its operator with a $ 1.7 billion fraud involving bitcoin. This action is the regulator’s biggest fraud case involving the cryptocurrency.
CFTC takes action against MTI
The CFTC announced Thursday that it has charged a “South African pool operator and CEO with $ 1.7 billion fraud involving bitcoin.” The controller added:
This action is the CFTC’s biggest scam involving bitcoin.
The derivative watchdog has filed a civil coercive case and charged Cornelius Johannes Steynberg and Mirror Trading International Proprietary Ltd. (MTI) for «fraud and registration infringement».
From approx. May 18, 2018, through March 20 last year, “Steynberg, individually and as a controlling shareholder in MTI, was engaged in an internationally false multi-level marketing scheme… to request bitcoin from members of the public to participate in a product pool operated by MTI, “CFTC detailed and elaborates:
During this period, Steynberg… accepted at least 29,421 bitcoin – with a value of over $ 1,733,838,372 at the end of the period.
The announcement adds that the CFTC “seeks full restitution for fraudulent investors, extinction of unlawful gains, civil fines, permanent registration and trading bans, and a permanent injunction against future violations of the Commodity Exchange Act and CFTC regulations.”
The derivative watchdog described:
The defendants omitted, either directly or indirectly, all the bitcoin they accepted from the pool participants.
The CFTC concluded: “Sternberg is a refugee from South African law enforcement, but was recently remanded in custody in the Federal Republic of Brazil due to an arrest warrant from Interpol.”
What do you think about CFTC’s action against MTI and its operator? Let us know in the comments section below.
Photo credit: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or recommendation of products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the Company nor the author is liable, directly or indirectly, for any damage or loss caused or alleged to have been caused by or in connection with the use of or reliance on the content, goods or services mentioned in this article.
