FBI Jumps Into the Alleged South African Mirror Trading Crypto Scam in 2020
The Federal Bureau of Investigation is joining investigators into one of the largest alleged crypto scams of 2020.
Thank you for reading this post, don't forget to subscribe!
Investigations into the notorious South African company Mirror Trading International (MTI) Bitcoin (BTC) Ponzi scheme — are now engaging the United States Federal Bureau of Investigation.
MTI, went into provisional liquidation in December 2020. After the cautionary press release in August from FSCA South Africa, the platform claimed to have over 260,000 members across 170 countries with a funding of around R2.9billion.
It had first caught regulators’ attention in Texas, USA back in July of last year, where its operations were quickly shut down. South Africa’s Financial Services Conduct Authority (FSCA) issued its a press release in August 2020, warning that the company lacked a mandatory license and was offering investors fantastical returns on their investment.
Since the shut down, head of enforcement, FCA, Brandon Topham notes that the liquidation team in South Africa has been attempting to trace MTI’s assets. It’s said that the company held around 23,000 BTC worth around $874 million at today’s price. The team has been seeking to expand powers to aid their efforts since January.
Reports suggest that MTI trustees said they had now “had meetings with international law enforcement agencies like the Federal Bureau of Investigation, after being approached by them,” revealing that “the FBI is joining forces with the liquidators of Mirror Trading International in the interest of several U.S. and local investors.”
An executive at the South African crypto exchange Luno has this week revealed to reporters that some of the victims of a major alleged crypto theft in the country is tied to the Africrypt investment scheme, and also sent funds to MTI.