South African financial regulator, the Financial Sector Conduct Authority (FSCA), has filed criminal charges with local law enforcement against Mirror Trading International (MTI), the alleged online bitcoin trading scam. The regulator says its decision to press charges follows an investigation into MTI that unearthed the company’s use of fake trade statements, undeclared losses, and possible fraud involving thousands of bitcoins.
Bogus Trading Statements
The ongoing probe’s preliminary findings seem to contradict claims by MTI’s executives that their company’s trading bot has “averaged a return of 10% per month, and that MTI has never had a negative profit trading day, but for one exception.” The findings also appear to contradict past denials by MTI CEO Johann Steynberg, who was slapped with a cease and desist order by U.S. regulators, that his organization is running a scam operation.
According to a statement issued on Dec.17, the FSCA accuses MTI’s executives of repeatedly using “trading statements based on demo trading accounts and not actual trades.” The practice, which is seemingly intended to reassure investors of MTI’s profitability, was uncovered by FX Choice, a Belize-registered online trading platform.
As reported by news.Bitcoin.com, FX Choice blocked MTI accounts after discovering that the latter was running a multi-level marketing scam. Meanwhile, as part of its investigation, the FSCA says it reached out and obtained evidence from FX Choice which proves that MTI actively engaged in an effort to mislead its investors.
After its relationship with FX Choice ended, MTI started dealing with another online trading platform, Trade 300. Interestingly, the FSCA says it found evidence on a desktop seized during a raid on the residence of one MTI executive suggesting that Steynberg controls Trade 300.
The Missing Bitcoins
In the meantime, the FSCA suggests that the freezing of MTI’s account with FX Choice…