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CFTC Sues Over Alleged $1.7 Billion Fraud Involving Bitcoin

  • Regulator says Mirror Trading bilked thousands of investors
  • Mirror Trading’s leader has been detained in Brazil, CFTC says
A novelty Bitcoin token.

A novelty Bitcoin token.

Photographer: Angel Garcia/Bloomberg
Updated on

The main US derivatives regulator is the latest authority to seek penalties from a Bitcoin trader that’s been accused by South African officials of operating a massive crypto Ponzi scheme. 

The Commodity Futures Trading Commission said Thursday that Mirror Trading International Proprietary Ltd. and its leader Cornelius Johannes Steynberg between March 2018 and 2021 bilked at least 23,000 Americans out of Bitcoin investments that were worth $1.7 billion at the time.