October 18, 2021

South Africa learns a hard crypto lesson amid fast growing demand

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Authorities in South Africa appear to be paying closer attention to the cryptocurrency space in 2021 in the wake of a major Bitcoin (BTC) Ponzi scheme and increased trading activity. As a result, the South African Financial Sector Conduct Authority has called for tighter controls of the crypto space following the collapse of what has been described as the biggest Ponzi scheme the country has ever seen.

In December 2020, Mirror Trading International went into provisional liquidation after one of its directors allegedly skipped the country, taking with him access to a copious amount of Bitcoin that investors had entrusted to the company over the past few years. In January 2021, MTI claimed to have over 260,000 members around the world and had amassed 23,000 BTC of investor’s holdings, which is worth over $1 billion in today’s market.

The South African arm of the business purported to conduct high-frequency derivatives trades using bots, but investors were left empty-handed at the end of 2020 when CEO Johan Steynberg fled the country. The firm’s other directors claim that Steynberg was the only one with direct control of MTI’s entire Bitcoin holdings and believe the CEOTitle: South Africa learns a hard crypto lesson amid fast growing demand
Sourced From: cointelegraph.com/news/south-africa-learns-a-hard-crypto-lesson-amid-fast-growing-demand
Published Date: Tue, 09 Feb 2021 12:36:40 +0000