South African Investors Hit by a Cryptocurrency Scam

  • MTI first started trading in early 2019 whereby the general public was invited to register on their website and move their Bitcoins from individual wallets to MTI Bitcoin wallets
  • MTI may have experienced heavy losses and requested members to delink their FX Choice accounts

The cryptocurrency market is not expected to be isolated from scams or possible fraud cases as loopholes are expected to develop with the regular expansion of the market across the world. With the recent developments, the Mirror Trading International (MTI) is a trading and networking firm that uses Bitcoins as its base currency to pay bonuses to its members. The firm claims to use an automated system to execute the FOREX trading on behalf of the investors.

Such techniques are expected to draw investors who are looking for superior investment returns coupled with sophisticated technology. However, the entire world seems to collapse for thousands of investors who had ploughed in R9 billion (9 billion rands) into MTI as the Financial Sector Conduct Authority (FSCA) announced that it was in the process of finalising an investigation stating MTI was indulging in ‘illegal operations’.

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The FSCA has clearly stated it has received multiple warnings from international authorities regarding dubious transactions by the MTI. Of late, there were also complaints from investors claiming they were unable to redeem their investments. The matter was reported to the police for investigation but this seems to be a deep rooted problem.

Irregularities Ringing Alarm Bells in Developing Regions

MTI first started trading in early 2019 whereby the general public was invited to register on their website and move their Bitcoins from individual wallets to MTI Bitcoin wallets. It was from these wallets, the Bitcoins were further transferred to MTI’s FOREX platforms called “broker of choice” by the name of FX Choice Ltd. The trading was conducted in derivative instruments basis the FOREX pairs.

It was after detailed investigation, the shocking fact unearthed was that MTI was not licensed to conduct financial services and neither has it applied for any such licenses. There is sufficient evidence to believe that the senior management is conducting an illegal operation, clients are being misled and various laws and regulations have been compromised.

Another aspect coming to foray is that MTI may have experienced heavy losses and requested members to delink their FX Choice accounts from multi-account manager and move their bitcoins to a pooled account. This led to MTI employing a high frequency artificial intelligence trading with a head trader and trading team to make the investment decisions. This way more money was available but if a situation arises whereby more withdrawals are required, the firm could be in a spot of bother.

There was also no evidence of crypto asset storage on any trading platform and the balances appeared to be in the name of MTI’s senior executives.

Would the Investors be able to Salvage their Money?

The next step of action will give sleepless nights to thousands of high profile investors who have now become victims to a firm and structure that was not delivering what it promised. Tracing and freezing of various assets may be impossible but if authorities do not have any other option, this will have to be executed.

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Steve Anderrsonhttp://www.thecoinrepublic.com
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.

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