Bitcoin Scammmers Collect 644 Million Dollars From 280 Thousand People
Bitcoin company operating in South Africa has been temporarily shut down by a court over allegations it defrauded investors, it has emerged. The company in question received $ 644 million from investors.
Stellenbosch-based Bitcoin company Mirror Trading International (MTI) has been temporarily shut down by a Cape Town Court over allegations it stole $ 644m (£9.45 bn) from 280k investors. The company has filed a complaint with its customers in court, according to reports quoted by BusinessDay. Following complaints, the court temporarily closed the company. As a result of this alleged fraud, the company’s property could be confiscated.
The company does not have the necessary licenses to operate
Bloomberg reported that two clients who filed for court were unable to withdraw their money from the company. However, there were some comments made by South Africa’s financial institution, the FSCA, about the company. According to the reports, the FSCA believes that the executives of the aforementioned Bitcoin company conducted illegal operations, defrauded their customers and violated some laws.
Shortly before this incident, the FSCA stated in a report published on December 17 that the company did not even have the licenses required under financial services. Some customers have complained and a police investigation is ongoing, the report said.
Company CEO may have fled to Brazil
In a letter shared on the company’s Telegram account, it was revealed that MTI CEO Cornelius Johannes Steynberg had fled South Africa, possibly to Brazil. The shared letter said the company’s bank accounts had also been suspended.
About the company
Mirror Trading International is a forex company that aims to enable customers to grow their investments by registering on the platform with a minimum of $ 100 worth of Bitcoin, according to information on their website. The company, whose founder is Cornelius Johannes Steynberg, is headquartered in South Africa / Stellenbosch. The company has more than 90 thousand members in 177 countries.