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$1.7B fraud in Bitcoin against South African National

south african national

south african national

Fraud in bitcoin once again as this time it is on some South African National

CFTC

The defendants misappropriated, either directly or indirectly, all of the Bitcoin they accepted from the pool participants

One of the largest fraudulent schemes which involve bitcoin has been informed and action taken against the South African national according to the United States Commodity Futures Trading Commission.

In the announcement which was held on Thursday announcement, the CFTC said that they had filed a case for the action in federal court for fraud and registration violations against Cornelius Johannes Steynberg who is a South African National. The South African national allegedly created and operated a global foreign currency commodity pool totaling more than $1.7 billion in bitcoin only, he only allowed the participants to pay using Bitcoin (BTC) like no other options to pay added in the commodity.

action against South African National

The CFTC alleged that Steynberg the man from south African national used the South Africa-based firm Mirror Trading International Proprietary Limited to solicit bitcoin from the public using social media platforms and various websites.

In 3 years of time from 2018 to 2021, the regulatory body claimed that he accepted at least 29,421 BTC — valued at more than $1.7 billion at the time, but roughly $564 million at the time of publication — including from individuals who are citizens of United States.
“The defendants misappropriated, either directly or indirectly, all of the Bitcoin they accepted from the pool participants,” said the CFTC.

The CFTC seeks full restitution to defrauded investors, disgorgement of ill-gotten gains, civil monetary penalties, permanent registration and trading bans, and a permanent injunction against future violations of the Commodity Exchange Act and CFTC Regulations.

The case against Steynberg is the latest in a series of enforcement actions the CFTC has taken against individuals allegedly using cryptocurrencies for illicit purposes or digital asset firms for violations of the Commodity Exchange Act. Not only this case a lot more cases has been reported and some are resolved too.

In June, the CFTC filed a lawsuit against Gemini, claiming the crypto exchange made false or misleading statements to the regulatory body in 2017. A federal court also ordered the founders of crypto derivatives exchange BitMEX to pay $30 million in penalties as part of the conclusion of a suit filed by the CFTC in October 2020.

More people are joining the wrong ways to earn more and more money on the basis of fraud in different ways which are wrong according to the laws and humanity too.

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