Mirror Trading International (MTI) declared a pyramid scheme by the South African High Court was a cryptocurrency trading platform promising automated trading services with significant returns.[1]
| Company type | Private |
|---|---|
| Industry | Ponzi scheme, Cryptocurrency |
| Founder | Johann Steynberg |
| Headquarters | South Africa |
Area served | Worldwide |
| Website | mirrortradinginternational.com |
MTI was masterminded by Johann Steynberg, who claimed to use an artificial intelligence bot for its trading activities.[2] MTI faced intense scrutiny and legal challenges, particularly from South African authorities, who alleged that it was operating as a fraudulent scheme.
MTI's unraveling led to its eventual collapse, the arrest of key figures, and significant financial losses for many investors.[3][4][5]
The scheme involved 100,000 people from 140 countries.[6]
Timeline edit
Timeline of Mirror Trading International:
2019: MTI was launched in South Africa as an automated bitcoin trading platform, offering significant returns to investors through a trading bot [1].
2020: Membership in MTI experienced a significant increase, especially due to its network marketing model [1]. In September 2020, vulnerabilities in MTI's website were exposed by Anonymous ZA and a MyBroadband investigative journalist, leading to worldwide warnings against the company [1]. In December 2020, MTI collapsed following the disappearance of CEO Johann Steynberg in Brazil [1].
2021: In June 2021, MTI was placed into final liquidation by the Western Cape High Court [1]. In December 2021, Johann Steynberg was arrested in Brazil on charges of using forged identity documents [1].
2023: In April 2023, the Western Cape High Court declared MTI a pyramid and Ponzi-type scheme. Attempts to appeal the ruling by Clynton Marks were not granted [1]. MTI's liquidators received recognition in various countries, aiding the investigation and fund recovery efforts [1].
Unraveling the MTI Saga: The Chronology of a Bitcoin Behemoth's Downfall - Get a Quid - MTI Recovery Group CFTC Charges South African Bitcoin Club Mirror Trading International With $1.7B Fraud Anatomy of a bitcoin scam: How MTI duped investors - TechCentral
The liquidators of MTI played a crucial role in the investigation and fund recovery efforts of the Ponzi scheme. Here are some ways in which they aided in these efforts:
Recovery of Funds: The liquidators successfully recovered 1,281 BTC (worth approximately R1.05 billion) from the sale of BTC held by Belize-based broker FXChoice [2]. This recovery was a significant step towards compensating the victims of the scam.
Identification of Possible Debtors: The liquidators conducted preliminary investigations and identified "possible debtors" with claims totaling R2.07 billion [2]. This process involved examining the assets and affairs of individuals and entities associated with MTI, including JNX Online, a company controlled by former MTI CEO Johann Steynberg and his wife Nerina [2].
Investigation of Assets and Affairs: The liquidators are actively investigating the assets and affairs of JNX Online, which was used by Steynberg to buy and sell BTC and to pay creditors and employees of MTI [2]. This investigation aims to uncover any potential fraudulent activities or hidden assets that could be used to compensate the victims.
Collaboration with International Law Enforcement Agencies: The liquidators have teamed up with international law enforcement agencies, including the US Federal Bureau of Investigation, to assist in the recovery of funds [2]. This collaboration enhances the chances of locating and retrieving assets that may have been moved or hidden outside of South Africa.
Appointment of Crypto Specialists: To aid in the quantification and identification of claims, the liquidators have appointed crypto specialists to analyze the information obtained from MTI's back-office platform, Maxtra Technologies [2]. These specialists possess the expertise needed to navigate the complexities of cryptocurrency transactions and trace funds.
See also edit
References edit
- ^ Vermeulen, Jan. "Mirror Trading International Declared a pyramid scheme".
- ^ Cohen, Tim (3 May 2023). "More Billions wasted: The smoke is clearing on Mirror Trading International". Daily Maverick. Retrieved 24 September 2023.
- ^ Cronje, Jan. "US judge fines MTI boss a record R64bn as SA court rules site was 'unlawful Ponzi scheme'". Business. Retrieved 24 September 2023.
- ^ "Fugitive CEO Ordered to Pay $3.4 Billion in Record Fraud Case Involving Bitcoin". Bloomberg.com. 27 April 2023. Retrieved 24 September 2023.
- ^ Schroeder, Pete (7 September 2023). "US court orders Mirror Trading International to pay $1.7 billion in restitution for crypto fraud". Reuters. Retrieved 24 September 2023.
- ^ "Bitcoin to bust: World's biggest Ponzi scheme could cause more heartache for Australians". Sydney Morning Herald. 2 December 2023.