The Commodity Futures Trading Commission , a U.S. federal regulatory agency, charged a South African citizen and a global foreign currency commodity pool with alleged fraud and registration violations worth nearly $2 billion in BTC.on Thursday , the CFTC issued a civil enforcement action against Cornelius Johannes Steynberg and Mirror Trading International Proprietary Limited before the U.S. District Court in the Western District of Texas.
The American regulator alleges that Steynberg, who was in control of MTI, was involved in an international fraudulent multilevel marketing scheme between May 2018 and March 2021. According to the CFTC’s complaint, the South African solicited bitcoin from individuals via social media and different websites to participate in a commodity pool operated by MTI. The regulator noted that investors were, however, not eligible contract participants .
Steynberg subsequently received a minimum of 29,421 BTC within the period, valued at over $1.73 billion at the time . About 23,000 participants came from the United States alone. MTI, however, did not register with the CFTC.Meanwhile, the regulator described the case as “the largest fraudulent scheme involving Bitcoin charged in any CFTC case.
However, the federal regulator warned that victims might not get their funds back as the defendants may not have enough funds or assets for repayment.a fraudulent scheme that defrauded investors of $44 million. The defendants also operated a commodity pool without a CFTC registration.
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