South Africa Bitcoin Multi-Level marketing Scheme MIT to Face Extensive Probe From Liquidators

By: Dickson Arinze

South Africa Bitcoin Multi-Level marketing Scheme MIT to Face Extensive Probe From Liquidators

January 15, 2021 10:38 PM

The South Africa based Bitcoin multi-level marketing (MLM) company Mirror Trading International (MIT) who defrauded over 260,000 investors from over 170 countries.


According to a recent report by coinnewsafrica less than a month, which reads that the Cape Town High Court ordered the liquidation against MIT, the liquidators are now seeking extended powers assist in the investigation of Mirror Trading International and recover investors funds.


According to Herman Bester, one among the four appointed liquidators said: "the team needs to operate across multiple jurisdictions to ascertain the full scope of MTI’s operation."


The liquidators are currently making moves to trace all the company’s assets. After this process is concluded, then the team will submit a formal report to the court indicating the likelihood of successfully returning investor funds to the victims of the alleged scam.


Mirror Trading international is being accused of misleading investors to invest in it's Bitcoin MLM scheme, promising a 10% return on investment per month.


However, the FSCA investigation into the firm’s operations did not find any evidence of successful trading by the company. In total, MTI is believed to be holding about 23,000 BTC worth over $880 million at the current Bitcoin price.


According to a report from South African media outlet The Citizen, leaked internal communication reportedly indicates that senior executives at MIT were unaware of the scam. According to details from the Zoom meeting in question, only the CEO Johann Steynberg was in complete control of the firm’s operations.


MIT founder Steynberg is reportedly missing from South Africa and is believed to be in Brazil. Also, nobody at the company has heard from him since December 2020.


MTI is one of several alleged crypto-related scams in South Africa. These investment schemes take advantage of the Bitcoin popularity in the country to naive unsuspected victims.