Fraud is ubiquitous in the crypto market. Many of the actors orchestrating these massive scams are navigating this industry peacefully… Until they get caught. Cornelius Steynberg, the boss of a South African firm, can now testify to this.
$3.4 billion in fines for bitcoin fraud
Crypto scams are the daily lot of many crypto users. It is true that often these systemic scam networks manage to blend in with the mass of credible crypto firms.
But sometimes some big fish, like Cornelius Johannes Steynberg, are caught. And the expression ” big fish “, is not exaggerated, given the grievances against him by the Commodity Futures Trading Commission (CFTC).
According to information provided by the regulator, the man, a South African, allegedly robbed nearly 23,000 Americans of their assets. Assets valued at nearly $1.7 billion, misappropriated between 2018 and 2021.
This massive diversion was allegedly carried out via Mirror Trading International Proprietary Limited (MTI). It is a platform run by Steynberg and whose business was to solicit BTC from users.
Objective of the operation: participate in a pool of raw materials. An activity for which MTI did not obtain approval and which led to the theft of 29,421 BTC. Faced with the discovery of the pot of roses, the South African official was the subject of legal proceedings.
This Friday, April 28, his sanction fell. The boss receives a record fine of 3.4 billion dollars. Half of the amount will be used to compensate the victims and the other half as a civil penalty.
The consequences of the Steynberg case and the question of compensation for victims
According to the CFTC, this fine constitutes “highest penalty” ever ordered in a case involving her. The measure is also accompanied by ancillary sanctions, including a permanent ban on carrying out any operation on the markets regulated by the CFTC. To believe that the regulator wanted to make this case an example. This, in accordance with its approach to regulating the crypto sector.
While Cornelius Johannes Steynberg is currently detained in Brazil following his arrest by Interpol, a question remains. How will the American victims of this scam be compensated?
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