Bitcoin
$41,668.48+5.29%
Ethereum
$2,220.90+3.03%
Binance Coin
$227.13+2.07%
XRP
$0.61949816+0.16%
Solana
$60.81-2.81%
Cardano
$0.39957280+2.53%
Dogecoin
$0.08847258+5.27%
Tron
$0.10373058-6.14%
Chainlink
$15.61-1.10%
Avalanche
$21.53-0.08%
Polygon
$0.79506018-0.96%
Polkadot
$5.49+1.65%
PlayIconNav
Crypto Prices CoinDesk Market Index CoinDesk Market Index
Markets

Texas Securities Regulator Accuses South African Trading Pool of Crypto Fraud

Texas' securities watchdog ordered Mirror Trading International to cease operations, alleging the South African bitcoin and forex "investor club" is a multilevel marketing scam.

By Danny Nelson
AccessTimeIconJul 8, 2020 at 7:46 p.m. UTC
Updated Sep 14, 2021 at 9:28 a.m. UTC
Mirror Trading International

“These quick-to-profits schemes rely on a little bit of smoke and the shine of mirrors,” said Texas Securities Commissioner Travis J. Iles. (Danny Nelson)

10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

The Texas State Securities Board (TSSB) on Wednesday ordered Mirror Trading International (MTI) to cease operations immediately, alleging the South African bitcoin and forex trading network is a multilevel marketing scam.

  • MTI, a self-described “investor club” that claims to yield 0.5% daily returns for 76,000 members through artificial intelligence-boosted bitcoin trades on foreign exchanges, fails to deliver to its fast-growing recruits, TSSB stated. Mirror did not immediately respond to a CoinDesk request for comment.
  • TSSB alleges Mirror CEO Cornelius Johannes "Johann" Steynberg was perpetrating an international multilevel marketing fraud and recruiting salespeople who do not have securities trading licenses. The regulator said Texans are among the victims.
  • Specifically, TSSB accused four Mirror associates – Forexandbitcoin.com, Michael Cullison, Steve Herceg and Brian Knott – of misleading Texans on their securities trading qualifications and past business failures. 
  • Cullison, who runs the Forexandbitcoin.com email account, denied committing any wrongdoing in an email to CoinDesk. He said bitcoin is not a security, he is not a fraudster and MTI has committed no crime.
  • "I don't sell anything and MTI doesn't sell anything. I refer people to MTI and that's it. I leave my bitcoin in MTI and it grows daily. The average is 10% per month. And it's compounding," he said.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.

Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.