| Company type | Private |
|---|---|
| Industry | Ponzi scheme, cryptocurrency |
| Founder | Johann Steynberg |
| Headquarters | South Africa |
Area served | Worldwide |
| Website | 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. 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.