New submissions by a South African regulator, the Financial Sector Conduct Authority (FSCA) and liquidators have exposed the web of lies and deceptive tactics that were used by Mirror Trading International (MTI) CEO Johann Steynberg and others to perpetuate the Ponzi scheme.

Undeclared Losses

In its report filed with the South African court, the regulator also exposes the true extent of losses that were incurred by the bitcoin investment company. For instance, in what the FSCA calls the “first period,” MTI had a “total of nearly 51 bitcoin (that) were deposited with Belize-based forex broker FXChoice, but 22 — or 43% — of these coins were lost by the traders.” However, at this point there was “no multi-level marketing involved.”

Nevertheless, this would change in the second period “when Steynberg purportedly introduced a computerized trading bot” that falsely guaranteed returns of 10% each day. The report explained:

FX Choice reported to the FSCA that 1,846 bitcoin were deposited with it between January and June 2020, but of this 566 bitcoin (about 30%) were lost. These trading results were completely at odds with the wild claims of success being promoted on social media by MTI. FX Choice subsequently froze the remaining 1,280 bitcoin.

In the last period, Steynberg claimed all investors’ bitcoin had been transferred to a new broker, Trade 300. Still, when the FSCA investigated this claim, “it concluded that Trade 300 was a fraudulent creation of Steynberg’s and does not exist as a bona fide brokerage,” according to a report by Moneyweb.

MTI Shareholding Structure

Meanwhile, MTI liquidators have similarly submitted “evidence” that exposes the bitcoin investment company’s actual shareholding structure. The liquidators’ position is paraphrased by the Moneyweb report: “Based on the evidence provided by the liquidators, MTI was owned 50-50 by Steynberg and Clynton Marks, who would divvy up 10% of the profits between them every Monday.”

However, the liquidators still concede that Steynberg seems to have been the only individual in MTI dealing with a broker in Belize and an India-based server team. “He would supply trading results from the broker to the server team for capture into the back-office system,” the report notes.

Nepotism Allegations

In the meantime, another director of MTI, Cheri Marks, is facing accusations of using her position in the organization to reward her associates. For instance, Marks is accused of appointing Monica Coetzee to the position of marketing director despite her lack of required qualifications. In addition, Marks is accused of bumping Coetzee’s salary from just over $1000 per month to one BTC per month.

Following these proceedings, a Western Cape High Court is now expected to hear arguments by those that want a final liquidation to be granted and those against it. According to a report, these proceedings are scheduled to be heard in the third week of June 2021.

What are your thoughts on the latest revelations about MTI’s huge losses and its shareholding structure? Tell us what you think in the comments section below.

Bitcoin News
Regulation, Bitcoin Ponzi scheme, Cheri Marks, final liquidation, Financial Sector Conduct Authority, FX Choice, Johann Steynberg, MTI, trading bot

nba gH9cS1

Coinbase Becomes Exclusive Cryptocurrency Platform for NBA, WNBA, USA Basketball

Cryptocurrency exchange Coinbase has partnered with the National Basketball Association (NBA). The Nasdaq-listed crypto company is now the exclusive cryptocurrency platform partner of the NBA, Women’s National Basketball Association (WNBA), ...
Read More
image 2021 10 19 174907 ONeXhz

Proshares Bitcoin Strategy ETF Debut Captures Close to $1 Billion in Volume

The first bitcoin exchange-traded fund (ETF) launched in the United States and smashed records on Tuesday, capturing close to $1 billion in total volume. Eric Balchunas, the senior ETF analyst ...
Read More
playdapp1280x720 BJMkiN

Chimeras Play-to-Earn Metaverse Completes Successful Funding Round

PRESS RELEASE. Chimeras successfully raised over $2 million in its latest fundraising round, which will help to fund the play-to-earn project’s market and product development. October 18th, 2021 – The ...
Read More
shutterstock 770443894 bkXdc6

Concierge Service Catering to Crypto Whales Sees 500% Increase in Clients Over the Last 6 Months 

On Tuesday, Concierge.io, the exclusive travel service backed by Travala.com announced it added new luxury services in order to give crypto investors “a more premium experience to live out their ...
Read More
shutterstock 1751887064 new BPM0pG

Iran to Pilot ‘National Cryptocurrency,’ Amend Central Bank Law

The central bank of Iran is gearing up to begin the pilot phase of its digital currency project in the near future, its new head announced to representatives of local ...
Read More
Share with Others