CEO of a well renowned South African Bitcoin trading company, Mirror Trading International (MTI) is on the run.
The company is said to have defrauded more than 28,000 of its clients for a cumulative amount of US$ 644 million.
The investors were facing difficulty trying to withdraw their profits from MTI. Whilst two of the investors took the matter to the court and successfully managed to obtain a provisional liquidation order against MTI.
Allegedly, MTI was in possession of US$ 644 million worth of digital currencies againstmillions of dollars investment made by South Africans.
The two investors took the matter to the court of Cape Town. The court finally passed provisional liquidation order against MTI. Financial Sector Conduct Authority (FSCA) also told the Court that it had sent several warnings to MTI but received no response.
FSCA said that it has registered several criminal cases against MTI. FSCA had also provided investigation details on Thursday vide a statement. FSCA also said that it was in the final stage of concluding its investigation against MTI. FSCA also revealed that last month it raided houses and offices of MTI’s executives.
FSCA further pointed out that MTI did not obtain the license to carry on the business of crypto trading in the first place. However, as an immediate measure, the accounts of MTI had been frozen, informed FSCA.
Meanwhile, FSCA had issued a circular lately which stated that MTI and its executives were running illicit crypto trading and defrauding investors. FSCA also issued public warnings, informing public not to invest in MTI and suggesting them to withdraw their investments. In spite of these warning, some investors couldn’t hold their hands back and invested in MTI.
MTI also pointed out that investors were drawn by presenting enticing campaigns of 10% monthly profit on investment.
FSCA also revealed that MTI’s CEO, Johann Steynberg, had also escaped the country with 17,000 Bitcoins.
Long before FSCA came into action, in July 2020, Texas Securities Commissioner Travis J. Iles began his investigation against MTI. He too alleged MTI to be a multilevel marketing scheme. The functions and operations of MTI were instantly stopped in Texas to save its people from any irreparable loss or injury.