The CFTC case revolves around Mirror Trading International Proprietary Limited (MTI) and its involvement in fraudulent activities.
On September 6, 2023, Judge David A. Ezra of the U.S. District Court for the Western District of Texas issued a consent order, holding MTI liable for various charges, including fraud in connection with retail Foreign currency (Forex) transactions, fraud by a Commodity Pool Operator (CPO), registration violations, and failure to comply with CPO regulations.
Staggering Restitution
One of the most remarkable aspects of the consent order is the requirement for MTI to make restitution payments exceeding a staggering $1.7 billion to the victims of the fraud. This restitution seeks to compensate individuals who were defrauded by MTI’s activities.
Furthermore, the order includes a registration ban against MTI, effectively prohibiting the company from engaging in any future Commodity Pool Operator (CPO) activities. However, this restriction aims to prevent MTI from repeating such fraudulent activities in the future.
Scheme Orchestrated by Cornelius Johannes Steynberg
According to the consent order, Cornelius Johannes Steynberg, both individually and as the controlling figure behind MTI, orchestrated an extensive international multilevel marketing scheme. Consequently, the primary objective of this scheme was to solicit Bitcoin from unsuspecting individuals, enticing them to participate in an unregistered commodity pool operated by MTI.
False Proprietary Trading Software Claims
Moreover, this unregistered commodity pool claimed to engage in off-exchange retail forex trading using what the defendants falsely presented as proprietary trading software or a “bot.” This misrepresentation was part of the fraudulent scheme.
Also, over a nearly three-year period, Steynberg and agents of MTI managed to solicit an astonishing 29,421 Bitcoin from participants. By the end of this period, the total value of these Bitcoin holdings exceeded a staggering $1,733,838,372.
CFTC Addressing the Grievances
The CFTC’s persistent pursuit of justice in this case was driven by the need to address the grievances of over 23,000 individuals from the U.S. who were victimized by MTI’s fraudulent activities. Lastly, this landmark verdict reinforces the CFTC’s dedication to ensuring that perpetrators of financial fraud face consequences of their actions.
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