| Mirror Trading International | |
| Type: | Private |
| Founder: | Johann Steynberg |
| Location: | South Africa |
| Area Served: | Worldwide |
| Industry: | Ponzi scheme, cryptocurrency |
| Homepage: | mirrortradinginternational.com |
Mirror Trading International (MTI), declared a pyramid scheme by the South African High Court, was a cryptocurrency trading platform promising automated trading services with significant returns.[1]
MTI was masterminded by Johann Steynberg, who claimed to use an artificial intelligence bot for its trading activities.[2] MTI faced intense scrutiny and legal challenges, particularly from South African authorities, who alleged that it was operating as a fraudulent scheme.
MTI's unraveling led to its eventual collapse, the arrest of key figures, and significant financial losses for many investors.[3] [4] [5]
The scheme involved 100,000 people from 140 countries.[6]
Timeline of Mirror Trading International:
2019:MTI was launched in South Africa as an automated bitcoin trading platform, offering significant returns to investors through a trading bot.[1]
2020:Membership in MTI experienced a significant increase, especially due to its network marketing model.[1] In September 2020, vulnerabilities in MTI's website were exposed by Anonymous ZA and a MyBroadband investigative journalist, leading to worldwide warnings against the company.[1] In December 2020, MTI collapsed following the disappearance of CEO Johann Steynberg in Brazil[1]
2021:In June 2021, MTI was placed into final liquidation by the Western Cape High Court[1] In December 2021, Johann Steynberg was arrested in Brazil on charges of using forged identity documents[1]
2023:In April 2023, the Western Cape High Court declared MTI a pyramid and Ponzi-type scheme. Attempts to appeal the ruling by Clynton Marks were not granted.[1] MTI's liquidators received recognition in various countries, aiding the investigation and fund recovery efforts.[1] [7] [8]
The liquidators of MTI played a crucial role in the investigation and fund recovery efforts of the Ponzi scheme. Here are some ways in which they aided in these efforts:
Recovery of Funds: The liquidators successfully recovered 1,281 BTC (worth approximately R1.05 billion) from the sale of BTC held by Belize-based broker FXChoice.[2] This recovery was a significant step towards compensating the victims of the scam.
Identification of Possible Debtors: The liquidators conducted preliminary investigations and identified "possible debtors" with claims totaling R2.07 billion.[2] This process involved examining the assets and affairs of individuals and entities associated with MTI, including JNX Online, a company controlled by former MTI CEO Johann Steynberg and his wife Nerina.[2]
Investigation of Assets and Affairs: The liquidators are actively investigating the assets and affairs of JNX Online, which was used by Steynberg to buy and sell BTC and to pay creditors and employees of MTI.[2] This investigation aims to uncover any potential fraudulent activities or hidden assets that could be used to compensate the victims.
Collaboration with International Law Enforcement Agencies: The liquidators have teamed up with international law enforcement agencies, including the US Federal Bureau of Investigation, to assist in the recovery of funds.[2] This collaboration enhances the chances of locating and retrieving assets that may have been moved or hidden outside of South Africa.
Appointment of Crypto Specialists: To aid in the quantification and identification of claims, the liquidators have appointed crypto specialists to analyze the information obtained from MTI's back-office platform, Maxtra Technologies.[2] These specialists possess the expertise needed to navigate the complexities of cryptocurrency transactions and trace funds.