CFTC Fines Mirror Trading International for BTC Scam

In a recent legal ruling, the Commodities Futures Trading Commission (CFTC) has achieved a remarkable victory by securing a substantial restitution of USD 1.7billion from Mirror Trading International (MTI), a South African company embroiled in a vast Forex fraud operation.

The legal proceedings at the heart of this matter stem from a complaint filed by the CFTC on June 30, 2022. This formal complaint brought to light a series of fraudulent activities, including the misleading of retail investors through deceptive Forex transactions, violations of registration prerequisites, and the flouting of regulations governing commodity pool operators (CPOs).

According to the CFTC, Cornelius Johannes Steynberg, the founder and CEO of MTI, played a pivotal role in orchestrating this intricate deception. Steynberg, acting both individually and as the controlling figure of MTI, allegedly lured unsuspecting individuals into contributing Bitcoin to an unregistered commodity pool purportedly operated by MTI.

“This resolution with MTI and the default judgment against Steynberg represent the latest chapter in our ongoing fight against fraudsters who have victimized over 23,000 individuals in the United States,” declared Ian McGinley, the Director of Enforcement at the CFTC.

“In this case, the fraudsters made promises that were modern in their presentation, touting advanced intelligence software with Bitcoin as the base currency that would purportedly yield immense wealth for investors. However, in reality, they were engaged in a classic form of fraud, resembling a multilevel marketing scam.”

Throughout the duration of these fraudulent activities, Steynberg allegedly managed to amass an astounding 29,421 Bitcoins, equivalent to over USD 1.7billion by the conclusion of the scheme. These funds were sourced from more than 23,000 U.S. citizens and a multitude of individuals worldwide. A report by Finance Magnates has revealed that the perpetrators of this scheme systematically misappropriated all the Bitcoins entrusted to them by the participants in their investment pool.

Founded in April 2019, MTI quickly rose to prominence as one of the world's most rapidly expanding cryptocurrency trading platforms, boasting a user base exceeding 260,000 individuals. The company attributed its meteoric success to a unique trading algorithm infused with artificial intelligence and machine learning capabilities, enabling it to execute profitable trades on behalf of its users.

Nonetheless, allegations of fraud and misconduct began to surface in late 2020, ultimately leading to MTI's provisional liquidation by a South African court in 2021. The penalty imposed against Steynberg has set a new record as the largest civil monetary fine ever administered by the CFTC in any case it has prosecuted.