CFTC accuses Mirror Trading International Proprietary Limited of $1.7 billion Bitcoin fraud

The U.S. Commodity Futures Trading Commission (CFTC) has charged the South Africa-based Mirror Trading International Proprietary Limited (MTI) and its head Cornelius Johannes Steinberg with cryptocurrency fraud and registration violations.

Statement of @CFTCjohnson Regarding the CFTC Charging South African Commodity Pool Operator and CEO with $1.7 Billion Fraud Involving Bitcoin. https://t.co/fKElfwQq5H

— CFTC (@CFTC) June 30, 2022

The agency stressed that MTI’s pyramid scheme to date is the largest Bitcoin-related fraud charged by the CFTC.

The Commission alleges that Steinberg devised an international ‘multilevel marketing scheme’ through which he took in more than $1.7 billion.

According to U.S. authorities, MTI attracted funds from investors for off-exchange retail foreign exchange trading using borrowed funds.

However, instead the company allegedly misappropriated funds from at least 23,000 people, misrepresenting trading results and creating a fictitious broker through which the alleged trades were conducted.

“In reality, the small trading operations conducted by the defendants were unprofitable. They illegally appropriated at least 29,421 BTC received from investors,” the CFTC said.

The commission is seeking full restitution for victims, as well as civil penalties.

Earlier in January 2022, Steinberg was arrested in Brazil. It was reported that MTI defrauded around 170,000 investors, who entrusted the pyramid with at least 22,000 BTC. The company promised monthly returns of at least 10%.

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