Biggest Cryptocurrency Scheme Comes from Africa: FBI Joins Mirror Trading Probe

The Federal Bureau of Investigation is now joining the investigation into one of last year’s largest crypto scams.

Investigations into the South African company Mirror Trading International (MTI) are now engaging the United States Federal Bureau of Investigation and focus on widespread accusations that MTI was involved in a Bitcoin Ponzi scheme that defrauded thousands.

MTI was a mirror trading company that allegedly allowed investors to mirror the Bitcoin (BTC) markets and then withdraw up to $200000 in fiat currency per day.

The scheme is run by MTI founder, Mark Lawrence White Jr., who has been indicted for fraud, wire fraud, computer hacking, and conspiracy charges related to stock manipulation schemes dating back decades.

White’s business partner Peter Anthony Johnstone also faces similar charges stemming from mirroring transactions over the past decade involving more than 70 publicly-traded companies on both sides of the Atlantic.

MTI (Mirror Trading International), LLC, once touted to have 260,000 members across 170 countries at its peak in 2020,is now being investigated by the FBI. The company first caught regulators’ attention when it was shut down in Texas last year. South Africa’s Financial Services Conduct Authority (FSCA) issued a warning about MTI back then; advising investors that without a license and “implausible fantastical returns on investments,” they should request immediate refunds from MTI employees

Since the collapse of a major bitcoin trading scheme in South Africa, law enforcement has been working to track down MTI’s assets. The liquidation team at MTI was reportedly seeking additional powers since January that would help them with their efforts.

The Mirror Trading International trustees have now met with both the Federal Bureau of Investigation and local enforcement, paving the way for U.S. investors to recover their funds in accordance with financial legislation sanctioned by international law enforcement agencies.

As reported, South African media outlets have leaked alleged internal MTI communication that suggests that the company’s senior executives were in the dark about the scheme’s operations. According to reports, MTI CEO Johann Steynberg had full control over its operations.

The liquidators said that there was a paper trail in the form of a plane ticket that Steynberg allegedly tried to use for this escape to Brazil. There is, however, no evidence to substantiate any of these claims. Steynberg hasn’t been seen since December 2020.

One of the executives from the SA-based Luno said there was another alleged cryptocurrency scheme that was tied to Africrypt and they have also previously sent funds to Mirror Trading

Source: Cointelegraph news

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