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Financial market supervisors are further monitoring activities related to cryptocurrencies. This time, it is in Texas that regulators are bringing down what looks like a scam: Mirror Trading International.
A promise to get rich in few minutes
In a press release issued on July 7, the Texas State Securities Board (TSSB) exposes the activities of an investment service related to Bitcoin , called Mirror Trading International (MTI) . The financial authority even summons MTI to immediately cease its activities ( cease and desist order ).
Mirror Trading International is a company touting multi-level selling (or MLM ) to encourage the deposit of bitcoins (BTC) on its platform.
The real problem for the TSSB is that this company of South African origin offers an (unrealistic) yield on bitcoins of 10% per month to attract a maximum of investors. A promise deemed too good to be true , given that percentages of 10% per year (and not per month) are already difficult in terms of investment.
Cornelius Johannes Steynberg , founder and CEO of MTI , claims to succeed in this feat by transferring the collected bitcoins to brokers , who would then process the BTC using artificial intelligence and a trading robot .
Commissioner Travis Iles of the TSSB, in charge of the file, explains that for him:
“These systems of [promises of] quick profits are based on face powder (…). Investors are often promised safe and lucrative returns, but promoters often (knowingly) fail to provide the basic information necessary to inform their investors and thereby meet their legal obligations. "
An international pyramid scam that must stop
Mirror Trading International has succeeded in weaving its web all over the planet. At the time of this cessation order, MTI had approximately 76,000 members in over 170 countries .
To end their activities, at least vis-a-vis Texan investors, the TSSB accuses MTI and accomplices, like ForexAndBitcoin.com , of violating state law which requires the registration of the sale of investments , as well as the registration of the sellers of these investments.
Just a week ago, the SEC in the Philippines asked managers of the decentralized Forsage application to cease operations for similar reasons.
Unfortunately, Ponzi-type pyramid schemes act like a hydra. In barely a head is cut pushes another, ready to gouge through the promise of easy money. Always take the time to think before investing, and ask yourself the question: is this return realistic compared to what exists? The answer here is clearly no.
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