New filings from a South African regulator, the Financial Sector Conduct Authority (FSCA), and liquidators have exposed the web of lies and deceitful tactics used by Mirror Trading International (MTI) CEO Johann Steynberg and others to keep the Ponzi scheme going.
In its report filed with the South African court, the regulator also reveals the true extent of the losses the bitcoin investment company has suffered. For example, in what the FSCA calls the “first period,” MTI had “a total of nearly 51 bitcoins (which) were deposited with the Belize-based forex broker FXChoice, but 22 – or 43% – of those coins were lost to them Dealer. ”However, at this point there was“ no multilevel marketing ”.
However, this would change in the second period, “when Steynberg allegedly introduced a computerized trading robot” which incorrectly guaranteed a daily return of 10%. The report stated:
FX Choice reported to the FSCA that 1,846 bitcoins were deposited with it between January and June 2020, of which 566 bitcoins (approx. 30%) were lost. These trading results contradicted the wild claims to success that MTI was promoting on social media. FX Choice then froze the remaining 1,280 Bitcoin.
In the last period, Steynberg claimed that the Bitcoins of all investors had been transferred to a new broker, Trade 300. When the FSCA investigated this claim, however, it came to the conclusion that Trade 300 was a fraudulent creation by Steynberg and does not exist as a bona fide brokerage ”, according to a report by Moneyweb.
MTI shareholder structure
Meanwhile, MTI liquidators have similarly presented “evidence” exposing the actual ownership structure of the Bitcoin investment company. The position of the liquidators is paraphrased in the Moneyweb report: “Based on the evidence presented by the liquidators, MTI 50-50 was owned by Steynberg and Clynton Marks who would split 10% of the profits between them every Monday.”
However, the liquidators still admit that Steynberg was apparently the only person at MTI who had dealings with a broker in Belize and a server team based in India. “It provided the server team with trading results from the broker for entry in the back office system,” the report said.
Meanwhile, another director of MTI, Cheri Marks, has faced allegations of using her position in the organization to reward her employees. For example, Marks is accused of having appointed Monica Coetzee as marketing director despite the lack of qualifications. In addition, Marks is accused of increasing Coetzee’s salary from just over $ 1000 a month to one BTC per month.
Following these proceedings, a Western Cape High Court is now expected to hear the arguments of those who want a final liquidation and those who oppose it. According to a report, this procedure will be negotiated in the third week of June 2021.
What do you think of the recent revelations about MTI’s huge losses and its shareholder structure? Let us know what you think in the comments section below.
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