A federal court in the United
States has ordered Cornelius Johannes Steynberg, the South African CEO behind
a $1.7 billion retail forex and commodity pool fraud, to pay a total of $3.4
billion. The amount comprises $1.7 billion in restitution payment to defrauded investors and another $1.7 billion civil monetary penalty. Judge Lee Yeakel of the US District Court for the Western District of Texas gave the order on Monday, the
Commodity Futures Trading Commission (CFTC) said on Thursday in a statement . The
action comes after the July 2022 civil enforcement action filed by the US derivatives markets watchdog
against Steynberg for running an unregistered commodity pool that
defrauded at least 23,000 individuals in the US and other investors worldwide between May 2018 and March 2021. According to the regulator,
Steynberg, who founded and ran Mirror Trading International
Proprietary Limited (MTI) as CEO, solicited participation in the pool through Bitcoin (BTC) payment. However, the company did not register as a commodity pool operator (CPO) and also failed to comply with CPO regulations, CFTC said. The case is the watchdog's biggest action against BTC fraud. The
$1.7 billion penalty awarded by Judge Yeakel is also the highest civil monetary penalty ever awarded in
a CFTC case, the regulator noted.
This article was written by Solomon Oladipupo at www.financemagnates.com.
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