Sad day in the world of crypto, as we do not really need these types of records or headlines.
South Africa’s biggest pyramid scheme
Mirror Trading International (MTI) CEO Cornelius Johannes Steynberg of Stellenbosch, Western Cape, Republic of South Africa. And yes that is an excellent name for a movie villain. He has been found guilty in the US District Court for the Western District of Texas and ordered to pay $3.5 billion (R63.6 billion) in restitution and penalties in the United States.
The $3.5M is divided into two parts, the first half $1,733,838,372 is restitution to defrauded victims and a $1,733,838,372 civil monetary penalty, which is the highest civil monetary penalty ordered in any Commodity Futures Trading Commission, CFTC, case.
The scheme had all the hallmarks of a classic fraud. MTI promised to grow members’ Bitcoin with monthly yields averaging 10%. Members could also obtain substantial bonuses by recruiting more people into the scheme. Sources involved in the liquidation of MIT have said that over 46,000 bitcoin flowed through the scheme. According to the court papers, there were supposed to be 22,222.548 bitcoin in its accounts. And that is what makes it South Africa's biggest Pyramid/Ponzi scheme in history.
But what there is more
Back in mid-December of 2020 Mr Johannes Steynberg suddenly disappeared during a trip to Brazil. This was soon followed by the collapse of MTI. IT is kind of funny how that almost always seemed to be the case. The captain of the ship disappears and soon thereafter the whole ship sinks. Whatever happened to the old days when the captain went down with the ship?
This does however have an happy ending, not for Johannes Steynberg but for the people seeking justice. As he was arrested in Brazil on 29 December 2021. Good job of him to at least make it a full year on the run. Hopefully, they will lock him up and throw away the key.
That is it for this edition of Bitcoin records we don't need. If you have anything to add, then the comment section is all yours. If you would like to support me and the content I make, please consider following me, reading my other posts, or why not do both instead.
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