FBI joins investigation to dismantle South Africa’s biggest crypto scam: Mirror Trading

FBI joins investigation to dismantle South Africa's biggest crypto scam: Mirror Trading

FBI joins investigation to dismantle South Africa's biggest crypto scam: Mirror Trading By Daily EditorBitcoin

Mirror Trading it had 260 thousand members from all over the world and a total of 23,000 bitcoins.


The United States Federal Bureau of Investigation, FBI, joins the investigation of the South African cryptocurrency company Mirror Trading International, MTI, considered the largest cryptocurrency scam of 2020, according to Bloomberg, to help the liquidators of the South African scheme to recover the assets of direct investors.

The Federal Bureau of Investigation (FBI) is collaborating with MTI liquidators to protect the interests of several U.S. and local investors, according to a recent report from Bloomberg.

Mirror Trading International It had approximately 260,000 members worldwide in November 2020 and also had a total of 23,000, now worth around $ 885 million.

According to the media, MTI went into final liquidation in June 2021 and South African financial officials labeled it a scam Ponzi, as well as being seen as the biggest crypto scam of 2020.

The group, made up of five trustees, said in an emailed statement to Bloomberg:

“We had meetings with international law enforcement agencies, such as the Federal Bureau of Investigation, after being contacted by them. The FBI is joining forces with the liquidators of Mirror Trading International in the interest of various local and US investors. “

Crypto scams from South Africa

In fact, scams using cryptocurrencies have been on the rise in South Africa since early 2021. After the founders of another big crypto scam Africrypt, Raees and Ameer Cajee went missing in June, the South African police began investigating a $ 3.6 billion fraud.

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International crypto scams have increased considerably in recent years, due to an increase in the use of digital currencies. In the case of MTI, nothing is yet known about Johann Steynberg, the CEO of the company in South Africa.

The liquidators stated that:

“Although there is a paper trail (plane ticket) regarding his possible flight attempt to Brazil, no video or photo confirmation could be obtained that he left the country.”

The liquidators also cast doubt on a court petition from Clynton Marks, a member of MTI’s management team, who claimed that declaring MTI an illegal business would harm its investors.

“It is not correct that the fact that the MTI business model is declared a fraudulent and illegal scheme would allow the liquidators to seize all the money that flowed into the scheme.”

South Africa plans to regulate cryptocurrencies to promote the “Responsible innovation”; The Intergovernmental Fintech Working Group (IFWG) has published a position paper on crypto assets that sets out a framework for how the government would regulate assets in the future in South Africa. By the way, in that country there is great interest in crypto investment, according to a report.

There are many people who fall for crypto scams. Here we count the most frequent ones.

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Sources: Bloomberg, Finlbold

Translation and version of DailyBitcoin

Picture of Unsplash

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