Table of Contents
Introduction:
Mirror Trading International (MTI) South African firm claimed that it provided its customers with services related to forex trading. Since it guaranteed substantial returns on investment, members of the cryptocurrency community began to adopt it in large numbers. Yet, in December 2020, the South African Financial Sector Conduct Authority (FSCA) announced that it was investigating the firm to see whether or not it was operating a Ponzi scheme. When MTI was put into provisional liquidation in January 2021, the liquidators of the firm have now “summoned” the company’s insiders to interview them about the situation.
Who exactly is Mirror Trading International and what do they do?
Mirror Trade International was a corporation that claimed that it provided its customers with services related to forex trading. Since it guaranteed substantial returns on investment, members of the cryptocurrency community began to adopt it in large numbers. According to the company’s website, Mirror Trade International used a trading system that was based on artificial intelligence and was created by Johann Steynberg, the CEO of the company. The business said that it could increase customers’ monthly earnings by as much as 10% with its services.
Nevertheless, the Food and Safety Compliance Authority discovered that the firm was not registered with them and that its business practices were not open to public scrutiny. The Financial Services and Consumer Act Authority (FSCA) said that Mirror Trade International was operating a Ponzi scheme, in which rewards were paid to initial investors using cash from subsequent investors. The Financial Services and Conduct Authority (FSCA) assessed that the business had raised something in the neighborhood of R9.25 billion ($630 million) from investors.
Provisional Liquidation of Mirror Trade International
In January 2021, the South African High Court ordered provisional liquidation to be filed against MTI. The court chose Eugene Januarie and Philip Meyer to take on the role of a liquidator for the corporation so that they could oversee its operations. To determine whether or not the firm had been running a Ponzi scheme, the liquidators were entrusted with investigating the company’s financial affairs.
The administrators of the firm quickly discovered that it had been running with a significant deficit for some time and that it owed its investors more money than it had in assets. They also discovered evidence of transactions and activities that could not be justified, such as payments to individuals with insider knowledge and transfers to offshore accounts.
The Liquidators Announced That They Had “Summoned” Mirror Trading International
Insiders For Questioning In March of 2023, the liquidators announced that they had “summoned” Mirror Trading International‘s insiders for questioning. The identities of the insiders have not been made public by the liquidators; nevertheless, they have said that those involved include both current and past employees of Mirror Trade International, in addition to members of the company’s board of directors.
The liquidators have claimed that they want to interrogate the insiders about the company’s financial issues and about any information they may have had about the alleged Ponzi scheme. In addition, they want to know whether any of the insiders participated in the scam. The liquidators are also looking for any information they can get their hands on on assets that may have been hidden inside the firm or moved outside of it.
Proceedings in a Court of Law
The liquidators have not yet initiated any legal procedures against MTI or its insiders in court. On the other hand, they have declared that they are thinking about all of their alternatives, which may include both civil and criminal action. The liquidators have also made it clear that they are collaborating with various law enforcement authorities to examine any potentially illegal behavior that may have taken place.
It has been revealed by the South African Police Service (SAPS) that an investigation is being conducted into Mirror Trading International for fraud as well as other offenses. The South African Police Service (SAPS) has announced that it is collaborating with law enforcement authorities from other countries to locate any assets that may have been concealed overseas.
The liquidators have requested that any individuals who may know MTI or its insiders come forward. They have also cautioned investors to be wary of any claims of large returns on investment, particularly if they come from firms or persons who are not registered with the appropriate authorities.
Conclusion
The failure of Mirror Trading International should serve as a lesson in risk management for investors, particularly those operating in the cryptocurrency market. The corporation allegedly ran a Ponzi scam, which resulted in many investors losing their money even though they were promised great returns on their investments by the company.
The examination into the affairs of Mirror Trading International that is being conducted by the liquidators is still underway, and it is still unknown what if any, legal action will be taken against the firm and its insiders.
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