- CFTC ordered South Africa-based bitcoin pool operator Mirror Trading International to pay $1.73 billion in restitution for defrauding investors.
- In June 2022, CFTC described this as the “largest ever fraud scheme case involving bitcoin.”
- MTI’s key figure Cornelius Johannes Steynberg is at the center of this lawsuit.
The Commodity Futures Trading Commission (CFTC) announced on April 28 that the Judge Lee Yeakel of the US District Court for the Western District of Texas entered an order of default judgment and permanent injunction against Cornelius Johannes Steynberg, the founder and CEO of Mirror Trading International Proprietary Limited (MTI).
Also Read: PCE Preview: Crypto market outlook around US Personal Consumption Expenditures release
CFTC’s largest settlement to date
The aforementioned order was entered on April 24 in response to the complaint filed on June 30, 2022. MTI’s scheme promised its users a stable return of 10% with a bonus to those that referred friends and family.
Steynberg lured users from across the world and ran his multilevel scheme from May 2018 through March 2021. When the regulatory pressure from South Africa and the US started to mount, MTI entered bankruptcy proceedings.
CFTC’s recent publication states the defendants were responsible for siphoning at least 29,421 BTC from at least 23,000 individuals. At the end of March 2021, Bitcoin holdings were valued a little over $1.73 billion.
The order finds that Steynberg, the founder and CEO of Mirror Trading International Proprietary Limited (MTI), a company currently in liquidation in the Republic of South Africa, is liable for fraud in connection with retail foreign currency (forex) transactions, fraud by an associated person of a commodity pool operator (CPO), registration violations, and failure to comply with CPO regulations."
The recent order from the judge requires MTI’s CEO to pay $1.73 billion in restitution to the inflicted. Additionally, Steynberg is permanently enjoined from engaging in conduct that violates the Commodity Exchange Act (CEA).
Bitcoin price currently hovers below $30,000 as it struggles to find a directional bias.
Read more: Examining Bitcoin price volatility in relation to US Government's Bitcoin holdings
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
IRS says crypto staking should be taxed in response to lawsuit
The IRS stated that rewards from cryptocurrency staking are taxable upon receipt, according to a Bloomberg report on Monday, which stated the agency rejected a legal argument that sought to delay taxation until such rewards are sold or exchanged.
Solana dominates Bitcoin, Ethereum in price performance and trading volume: Glassnode
Solana is up 6% on Monday following a Glassnode report indicating that SOL has seen more capital increase than Bitcoin and Ethereum. Despite the large gains suggesting a relatively heated market, SOL could still stretch its growth before establishing a top for the cycle.
Ethereum Price Forecast: ETH risks a decline to $3,000 as investors realize increased profits and losses
Ethereum is up 4% on Monday despite increased selling pressure across long-term and short-term holders in the past two days. If whales fail to maintain their recent buy-the-dip attitude, ETH risks a decline below $3,000.
Crypto Today: BTC hits new Trump-era low as Chainlink, HBAR and AAVE lead market recovery
The global cryptocurrency market cap shrank by $500 billion after the Federal Reserve's hawkish statements on December 17. Amid the market crash, Bitcoin price declined 7.2% last week, recording its first weekly timeframe loss since Donald Trump’s re-election.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.