The U.S. Futures Trading Commission (CFTC) has accused Mirror Trading International (MTI) and its operator of $ 1.7 billion in fraud involving bitcoin. This action is the regulator’s biggest fraud scheme involving the cryptocurrency.
CFTC Acts Against MTI
The CFTC announced Thursday that it has accused “a South African swimming pool operator and CEO of $ 1.7 billion in fraud involving bitcoin.” The regulator added:
This action is the CFTC’s biggest fraud scheme involving bitcoin.
The watchdog of derivatives filed a civil enforcement action, accusing Cornelius Johannes Steynberg and Mirror Trading International Proprietary Ltd. (MTI) on “fraud and registration violations.”
From about May 18, 2018, to March 20 of last year, “Steynberg, individually and as the dominant person of MTI, engaged in an international fraudulent multilevel marketing scheme … to request bitcoin from members of the public participation in a MTI-powered goods pool, “the CFTC detailed, elaborating:
During this period, Steynberg … accepted at least 29,421 bitcoin – worth more than $ 1,733,838,372 at the end of the period.
The announcement adds that the CFTC “seeks full restitution to defrauded investors, an outflow of ill-gotten gains, civil monetary penalties, constant registrations and trade bans, and a permanent ban on future violations of the Commodity Exchange Act and CFTC Regulations.”
The guard dog of derivatives described:
The defendants misappropriated, either directly or indirectly, all of the bitcoin they accepted from the pools.
The CFTC concluded: “Sternberg is a fugitive from South African police, but was recently arrested in the Federal Republic of Brazil on an arrest warrant from Interpol.”
What do you think of the CFTC’s action against MTI and its operator? Let us know in the comments section below.
Image Credits: 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 support of any 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 be caused by or in connection with the use or reliance on any content, goods or services mentioned in this article.