A US federal court has ordered Cornelius Johannes Steinberg, the South African chief executive responsible for a $1.7 billion retail and commodities fraud, to pay a total of $3.4 billion. The amount includes $1.7 billion in compensation payments to defrauded investors and another $1.7 billion in a civil monetary penalty.
Commodity Futures Trading Commission (CFTC) Judge Lee Yekel, of the US District Court for the Western District of Texas, issued the order on Monday. a permit. The action follows civil enforcement action in July 2022 that the US derivatives markets watchdog filed against Steynberg for running an unregistered commodity group between May 2018 and March 2021. The CFTC said the pool defrauded at least 23,000 individuals in the US and other investors worldwide. the world.
According to the regulator, Steynberg, who founded and runs Mirror Trading International Proprietary Limited (MTI) as CEO, asked to participate in the pool through Bitcoin (BTC) payments. However, the company is not registered as a Commodity Pool Operator (CPO) and does not comply with CPO regulations.
The case is the watchdog’s largest action against BTC scams and has garnered cross-border support from regulators in South Africa and Belize. The regulator noted that the $1.7 billion penalty awarded by Judge Yeakel is also the highest civil monetary penalty ever in a CFTC case.
international fugitive
The CFTC noted in the statement that Steinberg is a fugitive from justice in South Africa. However, the CEO was arrested in December 2021 following an arrest warrant from the International Criminal Police Organization (Interpol). The regulator added that he had been held in Brazil since then.
Explain how Steynberg ran the scheme, the derivatives watchdog noted that he deployed an “international fraudulent multi-level marketing scheme.”
“MTI and Steynberg controlled the commodity group and allegedly traded over-the-counter and retail through what they claimed was a ‘bot’ or proprietary software program,” the CFTC explained, adding that the founder and his associates “either directly or indirectly” misappropriated All the BTC they collected from the investors.
LSEG and Deutsche Bank results; encryption in Hong Kong; Read snippets of today’s news.
A US federal court has ordered Cornelius Johannes Steinberg, the South African chief executive responsible for a $1.7 billion retail and commodities fraud, to pay a total of $3.4 billion. The amount includes $1.7 billion in compensation payments to defrauded investors and another $1.7 billion in a civil monetary penalty.
Commodity Futures Trading Commission (CFTC) Judge Lee Yekel, of the US District Court for the Western District of Texas, issued the order on Monday. a permit. The action follows civil enforcement action in July 2022 that the US derivatives markets watchdog filed against Steynberg for running an unregistered commodity group between May 2018 and March 2021. The CFTC said the pool defrauded at least 23,000 individuals in the US and other investors worldwide. the world.
According to the regulator, Steynberg, who founded and runs Mirror Trading International Proprietary Limited (MTI) as CEO, asked to participate in the pool through Bitcoin (BTC) payments. However, the company is not registered as a Commodity Pool Operator (CPO) and does not comply with CPO regulations.
The case is the watchdog’s largest action against BTC scams and has garnered cross-border support from regulators in South Africa and Belize. The regulator noted that the $1.7 billion penalty awarded by Judge Yeakel is also the highest civil monetary penalty ever in a CFTC case.
international fugitive
The CFTC noted in the statement that Steinberg is a fugitive from justice in South Africa. However, the CEO was arrested in December 2021 following an arrest warrant from the International Criminal Police Organization (Interpol). The regulator added that he had been held in Brazil since then.
Explain how Steynberg ran the scheme, the derivatives watchdog noted that he deployed an “international fraudulent multi-level marketing scheme.”
“MTI and Steynberg controlled the commodity group and allegedly traded over-the-counter and retail through what they claimed was a ‘bot’ or proprietary software program,” the CFTC explained, adding that the founder and his associates “either directly or indirectly” misappropriated All the BTC they collected from the investors.
LSEG and Deutsche Bank results; encryption in Hong Kong; Read snippets of today’s news.
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