Official Liquidator, as well as the Financial Sector Conduct Authority (FSCA) of South Africa, have presented new submissions before the Court hearing the matter of Mirror Trading International (MTI). Both informed the Court how MTI was luring people into the trap and extorting huge amounts of monies from them by employing several deceptive and fraudulent practices.
The South African Court which is hearing the case of MTI has been apprised about how the fake crypto scheme was enticing people. The reality of MTI was exposed to the Court by the Official Liquidator, who was appointed by the Court itself. In addition, a further report explaining what methods were adopted by MTI was brought before the Court by FSCA.
First of all, FSCA informed the Court about the actual losses caused upon the people who had invested their monies with MTI. The company namely MTI, which claimed itself to be a Bitcoin investment platform, in fact, prompted a false investment scheme. Under the scheme, it took huge amounts of monies from the investors under the garb of investment into Bitcoin. For example, it was submitted by FSCA before the Court that in the first phase of MTI’s operations, MTI acquired a total of 51 Bitcoin units. These Bitcoin assets were then deposited by MTI with another forex firm called FXChoice. However, the real beneficiaries of half of these Bitcoins, who were the MTI’s investors, lost their Bitcoin units. Apparently, at the moment in time, the company did not indulge in heavy marketing and promotion of its false Bitcoin scheme.
Thereafter, MTI’s CEO, Johann Steynberg, decided to launch an automated trading tool at MTI’s platform. He also told MTI’s customers that the usage of this trading tool will enable them to earn profits @ 10% on daily basis. This was done when MTI moved into the second phase and again that was a lie that 10% earnings will be distributed.
FX Choice then subsequently told FSCA that during the period commencing from January 2020 till June 2020, it received 1,846 Bitcoins from MTI. However, FX Choice further stated that out of these 1,846 Bitcoins, about 30% Bitcoins i.e. 566, were unfortunately untraceable and were lost. This then led to the freezing of the remaining 1,280 Bitcoin units lying with FX Choice.
In response, Steynberg informed FSCA and FX Choice that the lost Bitcoin had actually been deposited with another broker. He told that the Bitcoins were handed over to Trade 300. At that particular moment, FSCA initiated an inquiry and tried to found out about this firm called “Trade 300”. Upon investigation, FSCA found out that there is no such crypto platform by the name “Trade 300” and Steynberg was actually lying.
Similarly, the Official Liquidator too presented evidence before the Court regarding the shareholders of MTI. He told the company was established with the joint partnership of Clayton Marks and Steynberg. Both of them had a shareholding of 50% each and both enjoyed an extra 10% of the profits every week as well.
The case is still continuing and awaiting final judgment.
