CFTC Fines Bitcoin Pool Operator $3.4B for Fraud
JOHANNESBURG, ZA – The head of Mirror Trading International (MTI), a South African bitcoin operating pool, has been ordered by a U.S. court to pay $3.4 billion in restitution and penalties, according to an order from the U.S. Commodities and Futures Trading Commission (CFTC).
The MTI head, Cornelius Johannes Steynberg, has been charged with fraud by the CFTC, which alleges he accepted 29,421 BTC ($1.7 billion) from 23,000 Americans for running an unlicensed commodity pool scheme. The fine is the largest civil monetary penalty ordered in any case brought by the CFTC.
According to the order, the CFTC finds MTI “liable for [...] fraud by an associated person of a commodity pool operator (CPO), registration violations, and failure to comply with CPO regulations.” Steynberg has been permanently prohibited from registering with the CFTC and trading in any markets regulated by the watchdog.
