South African Bitcoin Investment Company Pushes Back Against Texas Scam Allegations – Regulation Bitcoin News


South African Bitcoin Investment Company Pushes Back Against Texas Scam Allegations

Mirror Trading International (MTI), a South African bitcoin investment company at the center of a cease and desist order issued by the Texas State Securities Board (TSSB), is pushing back allegations that it is running a Ponzi scheme or a scam.

MTI CEO Johann Steynberg issued a statement assuaging MTI members that the organization is in discussion with the South Africa Financial Services Conduct Authority (FSCA).

Steynberg, who was issued a cease and desist order alongside three other individuals who reside in the United States, also says he is in correspondence with TSSB on this matter.

In a report carried by Global Crypto, a South African crypto website, Steynberg insists in a letter that his organization is not running a Ponzi scheme as members have full control of their bitcoins at all times.

“Another important point which differentiates MTI from Ponzi’s and scams is that members have full control over their funds (bitcoin) at all times.

Members can add or withdraw their funds (bitcoin) at any time, with no complications and no fees,” reads part of Steynberg’s letter.

Steynberg claims that none of its 75,000 plus members worldwide “has ever complained” or has failed “to withdraw their BTC whenever they have opted to.”

However, Steynberg’s letter, which closely resembles one being circulated to members, does not directly address TSSB’s core allegations.

Instead, the letter focuses on addressing the perception and characterization of MTI as a Ponzi scheme.

According to the TSSB cease and desist order, MTI and its U.S.-based affiliates allegedly violated the state’s laws by operating unregistered businesses.

Additionally, TSSB alleges that Steynberg was perpetrating an international multilevel marketing fraud and recruiting salespeople who do not have securities trading licenses. The regulator said Texans are among the victims.

Still, Steynberg says MTI will in the coming period be placing “great emphasis on engaging with and working with any regulator with a clear purpose at all times.”

The online passive income building industry — in which MTI has been operating for 15 months — has a notorious and demonstrated reputation for scams and Ponzi schemes, admits Steynberg.

Meanwhile, Steynberg says his organization wants to be “fully compliant as a professionally managed company” that delivers to its stakeholders for the foreseeable future.

Tags in this story
Bitcoin, cease and desist order, Johann Steynberg, Mirror Trading International (MTI), Multi-level marketing fraud, Ponzi Scheme, securities trading licenses, South Africa, Texas, Texas State Securities Board (TSSB)

What do you think about MTI’s response to allegations made against it? Tell us your thoughts in the comments section below.

Terence Zimwara

Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.

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