CFTC's Historic $3.4B Bitcoin Fraud Penalty Victory!
According to recent news, CFTC’s Historic $3.4B Bitcoin highlighted the largest fake Bitcoin scheme charged in its case and the highest penalty ordered in a CFTC case.
In response to the case filed by the financial regulator of the United States for the Fraudulent Bitcoin scheme, the judge imposed a penalty worth $3.4 billion.
Key Takeaways:
- CFTC won a $3.4 billion penalty in a Bitcoin fraud case, the largest ever ordered in a CFTC case.
- The case involves MTI CEO Cornelius Johannes Steynberg, who solicited Bitcoin from the public in an unregistered commodity pool.
- Steynberg accepted 29,421 bitcoins worth $1.7 billion, but only 23,000 people accepted $867 million from the U.S. or worldwide.
- Steynberg is responsible for fraud linked with transactions of retail currency and CPO compliance failures. He is banned from trading and registering in CFTC-regulated markets.
- This case is the largest fraudulent Bitcoin scheme charged and the highest civil monetary penalty in any CFTC case. The defendant was arrested in Brazil in December 2021 on an Interpol warrant.
Alexander Milanovskiy took to Twitter and made an announcement that CFTC charged the highest civil monetary penalty and largest fraudulent Bitcoin scheme case.
According to the Commodity Futures Trading Commission statement on 27 April, Texas District Court Judge Lee Yeakel asked Cornelius Johannes Steynberg to pay the sum of his role in the commodity pool in the faked scheme. This scheme involves the transaction of Bitcoin and foreign currency.
Moreover, the CEO of Mirror Trading International Proprietary Limited (MTI) and a South African national named Steynberg made a statement. He claims networking and trading companies must pay a $1.73 civil monetary penalty. This payment is in addition to the $1.73 billion restitution to victims of fraud.
The CFTC stated that in any CFTC case, it is the highest civil monetary penalty and largest fraudulent scheme, including Bitcoin.
Investing.com News took to Twitter and made an announcement to the fraudulent Bitcoin-related scheme operator, a staggering $3.4 billion penalty conveyed in order of the CFTC case.
According to judgment, Steynberg engaged in an international fraudulent marketing scheme. The crime is to solicit Bitcoin in the unregistered commodity pool from the public of participating members.
The CFTC stated that, from May 2018 to March 2021, he accepted more than 29,421 bitcoins worth $1.7 billion at a time. But 23,000 people accepted worth $ 867 million from the U.S. or worldwide.
According to CFTC, defendants misuse the Bitcoin taken from pool participants.
Steynberg is responsible for fraud linked with transactions of the retail currency. The fraud is linked to registration violations, a person of a commodity pool operator (CPO), and CPO regulation compliance failure.
Cryptowise.finance took to Twitter and made an announcement that in a Bitcoin-related fraud case, CFTC won a record of $ 3.4 billion.
Additionally, Steynberg is forbidden due to breaching the Commodity Exchange Act (CEA). So. He is banned from trading and registering in CFTC regulated market.
CFTC highlighted on 30 June 2022 that for fraud and breaching registration, it had filed legal action in federal court against Steynberg.
Initially, Steynberg ran away from South African law enforcement and escaped. Since December 2021, he detained in Brazil on an Interpol arrest warrant.