The Financial Sector Conduct Authority (FSCA) has issued a warning to the leadership of Mirror Trading International that it plans to levy a fine of R100 million against the scheme for violating South Africa’s financial regulations.
Mirror Trading International (MTI) was a South African network marketing scam that claimed to offer automated trading services — initially in forex and later in cryptocurrency derivatives. It accumulated billions of rand worth of bitcoin during 2019 and 2020.
Chainalysis named MTI the biggest cryptocurrency scam of 2020 in the most recent edition of its Crypto Crime Report.
Court documents, which MyBroadband has seen, gave the last estimate of the funds that flowed through MTI as 29,421.03379 bitcoin — close to R15 billion at current local exchange rates.
Acting Justice Alma de Wet granted a final liquidation order against MTI at the end of June.
In a letter signed by Brandon Topham, divisional executive of investigations and enforcement at the FSCA, the sector regulator stated that MTI violated several different laws in three distinct periods of its existence.
These periods are:
- April 2019 – July 2019 — MTI’s member trading accounts were reportedly linked to a professional trader appointed by MTI through a multi-account manager arrangement linked to Meta Trader 4. Trading was conducted in derivative instruments based on forex pairs through a platform broker named FXChoice. After substantial losses were incurred, MTI requested its…