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Mirror Trading hit with $1.7B fine by CFTC for forex fraud involving Bitcoin

Mirror Trading hit with $1.7B fine by CFTC for forex fraud involving Bitcoin

Commissioner Kristin Johnson of the Commodity Futures Trading Commission (CFTC) has announced that the CFTC has brought or resolved 10 fraud cases involving digital assets or foreign exchange since June 2023. One of the recent enforcement cases involves Mirror Trading International (MTI), which has been ordered by the United States District Court for the Western District of Texas to pay $1.7 billion in restitution to victims. MTI and its CEO, Cornelius Steynberg, were found to be operating a fraudulent scheme that accepted nearly 30,000 Bitcoin from at least 23,000 people in the US. The scheme promised access to an unregistered commodity pool in exchange for BTC contributions, but instead misappropriated the funds. This court order concludes a case that was filed by the CFTC in June 2022. MTI’s collapse is considered one of the largest Ponzi schemes involving digital assets. Commissioner Johnson encourages the public to stay informed about potential scams and abuses in digital asset markets and commends the Division of Enforcement for their vigilance in protecting the markets from fraud.

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