- MTI has defrauded nearly 28,000 investors making $644 million of personal gains
- The investment firm is granted a provision for winding-up it’s business operations
- The CEO of MTI has been disappeared and believed to have left the country
- This scam is considered as an international multilevel digital marketing scam
A Cape Town court has granted a provision for winding-up Mirror Trading International (MTI), a South Africa-based Bitcoin trading firm. It is known that thousands of its users were unable to withdraw their funds, and later on, it was revealed that the firm had defrauded nearly 28,000 investors. However, the total amount fooled by the firm is approximately $644 million. It is also known that the order of the court followed several warnings by the Financial Sector Conduct Authority (FSCA) against the firm.
MTI has defrauded investors spanning across the globe
The provisions were granted after two MTI clients went to the court with urgent files against it. It is believed that the trader firm is holding approximately 9.45 billion ZAR ($644 million) by its shady operations. However, the fund was received from almost 28,000 investors across the world. Last month only the Financial Sector Conduct Authority (FSCA) stated that the MTI and its senior management are conducting an illegal business that misleads its clients. The FSCA also claimed that the investment firm has contravened several laws, and asked its clients to withdraw their funds on an urgent basis.
The CEO of the firm is believed to have left the nation
More significant concern appeared when it was found that Johann Steynberg, the chief executive officer of MTI, disappeared. The management of the investment firm reportedly agreed to incorporate with the laws. It was then found that Steynberg disappeared with the control of the digital wallet with the investor’s funds of approximately 17,000 BTC. Indeed, it is assumed that till now, Steynberg must have fled from the country.
How does the trading firm attract investors?
MTI has claimed to return its clients a minimum of 10% returns monthly on their investments. It is also revealed that the firm has claimed that it uses high-frequency crypto trading algorithms to generate profits. On the other hand, it also claimed that the firm missed its income target only one day out of two hundred days.
Some local regulators have pointed out that MTI is unlicensed to carry out trading business, they also initiated a probe against the issue. In addition to the regulators, the watchdog again hit the firm with criminal charges against them and froze the MTI’s account. Additionally, the Texan regulators have also published a cease and desist order against the firm. However, this evil can be considered as an international multilevel digital marketing scam.
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