S.A Regulators Warns MTI Investors to be Prepared to Lose all Following the Company Collapse
February 6, 2021 1:35 PM
The South Africa based Bitcoin multi-level marketing (MLM) company Mirror Trading International (MTI) who defrauded over 260,000 investors from over 170 countries.
Mirror Trading International (MTI) which allegedly scammed investors, The Financial Sector Conduct Authority (FSCA) has warned investors seeking to recover their Funds to "be prepared to lose all".
The warning which was issued in terms of a crypto health warning after the FSCA received multiple complaints from South Africa victims of cryptocurrency scams. However, the warning reminds investors that investments related to crypto are currently not regulated.
Crypto-related is not regulated in South Africa which could be a trick for scammers to evade regulation. therefore, investors can't hold anyone should they get duped in the process.
The FSCA statement warns:
Crypto-related investments and lending linked to digital currencies, generally involves taking very high risks with investors’ money, which means anyone who indulge in it should be prepared to lose all of their money.
The Regulatory body in recent times have bemoaned the challenges of cryptocurrency regulation in the country saying scammers are taking advantage of the situation. Using now collapsed MTI as case study to explain how scammers continue to evade regulation by using cryptocurrencies.
The FSCA added:
“No assurance that cryptocurrencies could be converted into cash.” which leaves “consumers at the mercy of supply and demand in the market.”