US financial regulator, the Commodity Futures Trading Commission submitted charges against South Africa-based crypto trading platform Mirror and its head Cornelius Johannes Steynberg for running a misleading pool worth over $1.7 bln in BTC.
Related: CFTC Submitted a Complaint Against Gemini Over Bitcoin Futures
According to the agency's filing, Mirror was fraudulent and violated laws of registration. The CFTC says the project initiated and operated a pool that allowed only bitcoins to buy a participation in the pool valued more than $1.7 bln. The document says this is the largest fraudulent scheme related to Bitcoin charged in any CFTC case.
The financial watchdog seeks complete recovery of investments, disgorgement of profits, along with penalties, operating bans, and an order against future illicit activities. Also, the agency noted that victims may not get back their losses as the criminals may not have enough funds.
CFTC reports that from May 2018 to about April 2021, Steynberg was involved in a deceitful marketing scheme with the use of websites and social media to request BTC from members for taking part in a commodity pool by Mirror. Sternberg was arrested in Brazil according to an Interpol warrant.