New documents submitted by South African regulators, the Financial Sector Conduct Authority (FSCA), and liquidators expose a network of lies and deception strategies used by Mirror Trading International (MTI) CEO Johann Steynberg and others to maintain the Ponzi scheme.

Undeclared loss

In the report submitted to the South African court, the regulator also disclosed the true extent of losses suffered by the Bitcoin investment company. For example, in the so-called “Phase 1” of the FSCA, MTI has “a total of nearly 51 bitcoins (ie) deposited in Belize-based foreign exchange broker FXChoice, but 22 or 43% of them are traders.” However, “There is no multi-level marketing involved” at this time.

However, this will change in the second period, “At that time Steynberg allegedly introduced a computerized trading robot”, which incorrectly guaranteed a daily return of 10%. The report explains:

FX Choice reported to the FSCA that between January 2020 and June 2020, it deposited 1,846 bitcoins, but 566 bitcoins (about 30%) were lost. The results of these transactions are completely inconsistent with MTI’s successful rumors on social media. FX Choice subsequently frozen the remaining 1,280 bitcoins.

In the last period, Steynberg claimed that all investors’ bitcoins had been transferred to a new broker, Trade 300. However, when the FSCA investigated this claim, “it concluded that Trade 300 was a fraudulent creation by Steynberg and not a real brokerage business according to a report by Moneyweb.

MTI shareholding structure

At the same time, the MTI liquidator also submitted “evidence”, revealing the actual shareholding structure of the Bitcoin investment company. The Moneyweb report explains the position of the liquidator: “According to the evidence provided by the liquidator, MTI is owned by Steynberg and Clynton Marks 50-50, and they will allocate 10% of the profit between them every Monday.”

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However, the liquidator still admitted that Steynberg appears to be the only person in MTI who has dealt with the Belize agent and the Indian server team. The report stated: “He will provide the broker’s trading results to the server team in order to capture them in the back-end system.”

Nepotism allegations

At the same time, Cheri Marks, another director of MTI, is facing charges of using her position in the organization to reward her colleagues. For example, Max is accused of appointing Monica Kuche as marketing director, even though she lacks the necessary qualifications. In addition, Max is accused of increasing Couche’s salary from just over $1,000 per month to 1 bitcoin per month.

After these procedures, the Western Cape High Court is now expected to hear the arguments of those who wish to approve the final liquidation and those who oppose it. According to a report, these proceedings are scheduled to be heard in the third week of June 2021.

What is your opinion on the latest disclosure of MTI’s huge losses and its shareholding structure? Tell us what you think in the comments section below.

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