The U.S. Commodity Futures Trading Commission (CFTC) has charged Miller Trading International (MTI) and its operator with $1.7 billion in fraud involving bitcoin. This action is the largest regulatory fraud scheme case involving cryptocurrencies.
CFTC takes action against MTI
The CFTC announced Thursday that it has “charged a South African pool operator and CEO with $1.7 billion in fraud involving Bitcoin.” The regulator added that
This action is the CFTC’s largest fraud scheme case involving bitcoin.
The derivatives watchdog filed a civil enforcement action, charging Cornelius Johannes Steynberg and Mirror Trading International Proprietary Ltd. (MTI) with “fraud and registration violations.” (MTI) for “fraud and registration violations.”
From approximately May 18, 2018 to March 20 of last year, “Steynberg, individually and as a controlling person of MTI, engaged in an international fraudulent multi-level marketing scheme … to solicit bitcoin from members of the public to participate in a product pool operated by MTI. engaged in,” the CFTC elaborated.
During this period, Steynberg … . accepted at least 29,421 bitcoins, which were worth more than $1,733,838,372 at the end of the period.
The announcement adds that the CFTC “seeks full restitution for defrauded investors, refund of ill-gotten gains, civil money penalties, permanent registration and trading bans, and a permanent injunction against future violations of the Commodity Exchange Act and CFTC regulations ” The CFTC seeks full restitution for defrauded investors.
Derivatives Oversight Board Statement.
Defendants misappropriated, directly or indirectly, all bitcoin accepted from pool participants.
The CFTC concluded that.” Sternberg, a fugitive from South African law enforcement, was recently detained in the Federative Republic of Brazil on an Interpol arrest warrant.”
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