US financial regulatory agency investigates crypto fraud

The US financial regulatory agency investigates South African speculative platform for $1.7 billion crypto fraud

The US financial regulatory Commodity Futures Trading Commission (CFTC) has requested an investigation into a South African speculative platform and is demanding that it restore $1.7 billion deposited in crypto by its clients.

The Mirror Trading International (MTI) company, according to its official settlement in July 2022, offered its clients a potential return of more than 100 % per year for an algorithm that turned out to be imaginary.

According to the CFTC, the company MTI and its main executive Cornelius Steynberg, admitted “1.7 billion dollars in bitcoins” and a part of those cryptocurrencies are owned by “23,000 US residents”.

The regulatory body reported, through an official statement, that it is “the most important fraud in bitcoins ever prosecuted by the CFTC.” According to information released by some South African media, MTI had some 300,000 users at the time of its suspension.

The MTI platform is currently being investigated and Interpol has issued a global arrest warrant against Cornelius Steynberg, who was arrested in Brazil in December 2021 and is currently awaiting the extradition decision requested by South Africa to bring him to trial in his country.

On the other hand, the CFTC pointed out that there is little chance that MTI investors will be able to recover their money because the “persons involved may not have sufficient funds.”

M. Rodríguez

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