📰 Yello Paradisers!
The United States District Court for the Western District of Texas has ordered Mirror Trading International (MTI) to pay a staggering $1.7 billion in restitution. The Commodity Futures Trading Commission (CFTC) announced this as a resolution to the fraudulent activities involving digital assets and forex by MTI and its CEO, Cornelius Steynberg.
📰 The Scheme: Promises and Betrayals
MTI and Steynberg were involved in an “international multi-level marketing scheme,” collecting nearly 30,000 Bitcoin from at least 23,000 people. They promised access to an unregistered commodity pool in exchange for Bitcoin, a promise that was never fulfilled. Instead, the money was misappropriated.
📰 Historical Context: One of the Biggest Ponzi Schemes
MTI went into provisional liquidation in late 2020, with one of its directors allegedly fleeing the country and taking all the invested Bitcoin. At the time of liquidation, investors had lost roughly $1 billion, making this one of the largest Ponzi schemes in digital asset history.
📰 Regulatory Vigilance: CFTC’s Ongoing Efforts
CFTC Commissioner Kristin Johnson emphasized the commission’s commitment to protecting the market from fraud. She noted that the CFTC has resolved ten fraud cases involving digital assets or forex since June 2023.
📰 Future Outlook: Calls for Better Regulation
CFTC Commissioner Caroline Pham is advocating for a limited pilot program to address cryptocurrency regulation in the U.S., indicating that the country may need to “play catch-up” to crypto-friendly jurisdictions. Another commissioner, Summer Mersinger, also expressed concerns over enforcement actions related to decentralized finance protocols.
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