US Court Orders Operator of South African Bitcoin Ponzi Scheme to Pay Over $3.4 Billion
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Johann Steynberg, the founder and CEO of Mirror Trading International, has been ordered to pay over $1.73 billion in restitution to victims of his bitcoin ponzi scheme. The court has also ordered Steynberg to pay a civil monetary penalty of a similar amount. The Commodity Futures Trading Commission (CFTC) conceded that orders requiring payment of funds “may not result in the recovery of any money lost because wrongdoers may not have sufficient funds or assets.” ‘Largest Fraudulent Scheme Involving Bitcoin’ in the History of the CFTC A United States Federal Court recently handed down a default judgment and permanent injunction
The alleged scam is the largest fraudulent scheme involving bitcoin in any CFTC case The regulator said MTI “misappropriated, either directly or indirectly, all of the bitcoin they accepted from the pool participants” The Commodity Futures Trading Commission has filed civil charges against Cornelius Johannes Steynberg and his South Africa-based…