The US Commodity Futures Trading Commission (CFTC) has accused South African company Mirror Trading International Proprietary Limited (MTI) and its chairman, Cornelius Johannes Steinberg, of cryptocurrency fraud and registry violations.

statement @CFTCjohnson Regarding CFTC’s Charge South African Commodity Pool Operator and CEO for $1.7 Billion Fraud Involving Bitcoin. https://t.co/fKElfwQq5H

– CFTC (@CFTC) 30 June 2022

The agency highlighted that the pyramid scheme regulated by the MTI is the largest scam using bitcoin currently indicted by the CFTC.

The commission alleges that Steinberg has created an international “multi-level marketing plan” for which it has received more than $1.7 billion.

According to US authorities, MTI has raised funds from investors for leveraged over-the-counter currency retail trading.

Instead, the company embezzled the money of at least 23,000 people, falsified information about the results of the trade, and created a fictitious broker that allegedly made transactions.

“Actually, the small business operations conducted by the defendants were unprofitable. “The CFTC has embezzled at least 29,421 BTC received from investors.”

The commission is demanding a full refund as well as a fine to the victims.

Recall that Steinberg was arrested in Brazil in early January 2022. It was then reported that MTI had cheated 170,000 investors who had entrusted the pyramid with at least 22,000 BTC. The company promised at least 10% monthly returns.

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