US files charges over South African bitcoin fraud scheme

regulator has filed civil charges against a South African man and his company for operating a fraudulent commodity pool worth over US$1.7-billion in bitcoin.

The Commodity Futures Trading Commission said the fraud scheme, which saw the firm solicit bitcoin online from thousands of people to purportedly operate a commodity pool, was the largest it had ever pursued involving the cryptocurrency. The CFTC filed charges against Mirror Trading International and its CEO, Cornelius Johannes Steynberg.

In reality, only a small portion of the pooled bitcoin was ever invested, at a loss, and the rest was “misappropriated”, according to the CFTC. The company ultimately filed for bankruptcy in 2021, shortly after which South African authorities launched a fraud investigation.

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United States lays charges against South African man over R28 billion Bitcoin scamA US financial services regulator has civilly charged Mirror Trading International CEO Johann Steynberg with fraud. It said this is the largest fraudulent scheme involving Bitcoin charged in any of its cases. Don't do fraud kids. Do honest work. You might not make billions, but you'll live a life of peace.
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