Bitcoin Scam: Mirror Trading International Guilty of Fraud

Mirror Trading International Found Guilty

Mirror Trading International (MTI) has been found guilty by a US court of defrauding victims of a bitcoin scam, and is facing a $1.7 billion restitution order.

The US Commodity Futures Trading Commission (CFTC) has revealed the indictment of Mirror Trading International Proprietary Limited (MTI) in a cryptocurrency fraud case. The complaint against the South African company was filed on 30 June.

MTI had falsely promised intelligence software to victims using Bitcoin (BTC). The company and its CEO misled users by offering to participate in an unregistered commodity pool in exchange for bitcoins. They managed to trick victims into contributing a staggering 29,421 BTC.

As a result of the ruling, MTI is mandated to compensate the victims an estimated $1.7 billion and they will be banned from trading in the CFTC markets.

The rise and impact of crypto scams

With the huge rise in the adoption of cryptocurrencies, scams in this sector have risen at the same time. Deceptive tactics, including promising large returns on cryptocurrency investments, have fooled many. These scams can mimic Ponzi schemes, offering the illusion of profits until they inevitably collapse.

In 2022, The Washington Post highlights that Americans have lost more than $1 billion in cryptocurrency scams since 2021, affecting more than 46,000 individuals. Meanwhile, a study by Indian cybersecurity firm CloudSEK confirmed that cryptocurrency scams spread through social media have swindled Indian investors out of around Rs 1,000 crore.

To counter such frauds, conducting due diligence is crucial. Potential investors should carefully examine investment opportunities and be skeptical of guaranteed high returns.

Efforts to combat these scams are ongoing. While the US Federal Trade Commission (FTC) actively investigates and punishes those involved in cryptocurrency scams, the decentralized nature of cryptocurrencies and the global reach of fraudulent actors make them difficult to crack down on.

Previous articleUnveiling the Details: How Sam Neill’s Accent Dilemma Shaped Jurassic Park
Next articleKing’s Bounty II: Free Upgrade for PlayStation 4 and Xbox One Players, Enhanced Features for PlayStation 5 and Xbox Series Versions
Irene Diaz is a celebrity news reporter who started her career as a TV News Reporter. She then progressed into fashion & beauty reporting and eventually jumped from TV to the web, where she worked as a Senior Editor at 24PalNews. Irene believes that if she can, so can you. She’s a firm believer that anything is possible. Her motto is, “It’s all about believing.”

Leave a Reply