The Commodity Futures Trading Commission (CTFC) is charging a South African trading company to use Bitcoin (BTC) as its base currency for allegedly running the largest BTC trading scheme ever. .
Under a new statement by CTFC Commissioner Kristin Johnson, the regulator is filing civil enforcement action against Mirror Trading International Proprietary Limited and Cornelius founder Johannes Steynberg for allegedly running a multi-level marketing crypto scheme .
The CFTC commissioner alleges that the company implemented a fraudulent scheme to solicit, accept, and pool more than $1.7 billion for retail currency swaps and exchanges. The statement also alleges the company claims that it will use margin, financing and/or leverage in its trading activities.
“The defendants engaged in an international deceptive multi-level marketing scheme through various websites, in addition to social media, to solicit Bitcoin from members of the public participating in the group.” their.
At least 23,000 pool participants – most, if not all, of whom are not eligible contract participants – are from the United States. ”
The CTFC alleges that instead of trading funds on foreign exchange platforms, the defendants defrauded investors by appropriating their funds and operating a Ponzi scheme.
“The defendants misappropriated group funds, misrepresented their trading and performance, provided fictitious account statements as well as created a fictitious broker for purported trading and said collectively operate the group as a Ponzi scheme.
In fact, the small trade Defendant made was unprofitable and they essentially appropriated all at least 29,421 accepted Bitcoins from the participants. ”
The lawsuit marks the biggest lawsuit Bitcoin trading scheme was once prosecuted by the CTFC, according to the statement.
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