Bitcoin
$64,474.58+0.32%
Ethereum
$3,156.89+0.61%
Binance Coin
$614.58+1.13%
Solana
$145.03-1.83%
XRP
$0.52560339-0.29%
Dogecoin
$0.15149275+0.06%
Toncoin
$5.41-2.51%
Cardano
$0.47044235-0.90%
Shiba Inu
$0.00002571+0.23%
Avalanche
$35.59-2.23%
Tron
$0.11736227+3.55%
Wrapped Bitcoin
$64,571.96+0.28%
PlayIconNav
Crypto Prices CoinDesk 20 Index CoinDesk 20 Index
Countdown to Consensus 2024The largest and longest running event that covers all sides of Crypto and Web 3
33
DAYS
12
HR
02
MIN
23
SEC
Markets

Mirror Trading Clients Should Take Their Money and Run, South African Regulator Advises

FCSA said Mirror Trading's self-proclaimed 10% monthly returns "seems far-fetched and unrealistic" as it opened an investigation.

By Danny Nelson
AccessTimeIconAug 19, 2020 at 9:30 p.m. UTC
Updated Sep 14, 2021 at 9:45 a.m. UTC
(Shutterstock)
(Shutterstock)
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

South Africa's financial watchdog is investigating Mirror Trading International (MTI), a purportedly lucrative crypto trading network that Texas state regulators last month declared as a fraud.

  • At the very least, the Financial Services Conduct Authority (FSCA) intoned in its Tuesday announcement that MTI is operating a financial service without a license.
  • MTI told FSCA its bots conduct high-frequency derivatives trades with client's pooled bitcoin, consistently generating 10% monthly returns.
  • But FSCA said it "has much greater concern" about the legitimacy of MTI's purported business model. It said in a statement that such a consistent high yield "seems far-fetched and unrealistic."
  • Regulators are now parsing through statements made by a former platform broker for MTI that may contradict MTI's self-descriptions.
  • MTI has "partially cooperated" in the inquiry, according to FSCA, and informed clients of the investigation. FSCA recommended that all clients jump ship post-haste: "We recommend that clients request refunds into their own accounts as soon as possible."
  • MTI CEO Johann Steynberg denied the trading club is a scam in a letter to investors obtained by the news site Bitcoin.com.
  • FSCA's inquiry comes just over a month after the Texas State Securities Board ordered MTI and its associates to "cease and desist" what it called a multi-level marketing scam.

Disclosure

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

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies 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 with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

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.