Liquidators request greater powers in probing South Africa’s BTC Club Business
Liquidators in South Africa are requesting more powers of investigation into a digital currency trading scheme which some have accused of lying, fraudulent and illegal behavior towards investors.
According to reports, four liquidators are appealing for greater powers of scrutiny into Mirror Trading International, after the firm was found wanting in an investigation by the South African Financial Services Conduct Authority in 2020.
The scheme had previously operated as a “crypto trading club,” promising investors a 10% return per month through a high-frequency bot trading strategy.
The liquidators involved in the case have now asked for greater powers to compel witnesses to trial, as well as to request financial information from banks and other institutions. They also want the authority to appoint additional liquidators, as well as the ability to operate across multiple different jurisdic
MTI Bitcoin ‘trading’ scheme leads to wine, antidepressants and tears Ina Opperman (Photo by JACK GUEZ / AFP) The collapse of Mirror Trading International (MTI) appears to have caused financial destruction in many small communities in South Africa.
Mirror Trading International (MTI), which was started in April 2019, collapsed after its CEO Johann Steynberg fled the country with over R5 billion worth of investors’ Bitcoin, and some ‘investors’ still believe that Steynberg will ‘do the right thing’ and pay out their money.
The Financial Sector Conduct Authority (FSCA), however, says there was ‘negligible trading from the so-called ‘copy trading service’, and 99% of funds were never invested’ as far as they could see.
This week MoneywebNOW looked at MTI investors possibly having to pay back the money, Janet Yellen s new role, investing in Tesla vs Exxaro, whether SA may continue to under-perform, and more.
Damien Venuto: Beware the dangerous influencer in your family
21 Jan, 2021 04:43 AM
6 minutes to read
Our trust can be used against us. Photo / Getty Images
OPINION:
This week the Commerce Commission issued a Stop Now order to a woman promoting what is likely to be a pyramid scheme. The letter sent to Shelly Cullen in respect of her promotion of the Lion s Share cryptocurrency-themed scheme only scrapes the surface of the multi-level marketing that blights social media.
A Commerce Commission spokesperson tells the Herald the watchdog is investigating a number of other schemes that similarly have the characteristics of a pyramid structure built into the offer.
Two leaders of Mirror Trading International, Clynton and Cheri Marks, have denied allegations that the company’s leadership conspired to locate and kidnap its…