News affecting your trades: MTI collapse attracts attention of international law enforcement

 News affecting your trades: MTI collapse attracts attention of international law enforcement

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With the price on Bitcoin reaching the R500 000-mark over the weekend, the scale of collapse that Mirror Trading International (MTI) has reached is growing daily. It was confirmed over the weekend that the United States Federal Bureau of Investigation (FBI) is involved in the international investigation into the trading platform. As a Bitcoin investment scheme that promised returns as high as 10% a month, it attracted a reported 23 000 Bitcoin from around the world worth approximately R11bn at the current Bitcoin price, and garnered considerable amounts of investments over the last few months. According to advocate Vaughn Victor, FBI involvement is obligatory when suspected fraud involves US dollars. Due to the international nature of the investigation, multiple law enforcement agencies around the world are likely to get involved.

Although initial claims stated that MTI had around 280 000 members, it was later found that it has around 60 000 members, with many of these having created what are referred to as ‘downline’ accounts, to ‘beef up’ the numbers so that they could benefit from the 10% commissions that members can get when they introduce new members to the scheme.

It is likely that liquidators will be appointed within the next few days to freeze MTI’s assets. The next step involves the cooperation from multiple authorities around the world so that the transfer of Bitcoin belonging to investors can be blocked. Investigators will also have to track down Bitcoin from wallets that may be hidden, and these assets must then be returned to the control of MTI so that it can be aggregated to see what remains from the estimated 23 000 Bitcoin that MTI received from investors. Once liquidators have been appointed, extended powers will be requested from the courts to track and recover the assets internationally.

Chris Louw

https://sashares.co.za/

Featured Financial Writer for SA Shares - Read more about Chris's Bio -

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