• CFTC wins record $3.4 billion penalty payment in Bitcoin-related fraud case
• Texas District Court Judge ordered Cornelius Johannes Steynberg to pay the sum for his role in perpetrating a fraudulent commodity pool scheme
• The CFTC said it is the “highest civil monetary penalty ordered in any CFTC case” and also “the largest fraudulent scheme involving Bitcoin charged in any CFTC case”
CFTC Wins Record $3.4 Billion Penalty Payment
The Commodity Futures Trading Commission (CFTC) has won a record-breaking $3.4 billion penalty from a court ruling in the United States involving a fraudulent scheme involving Bitcoin (BTC).
Texas District Court Judge Orders Payment From Cornelius Johannes Steynberg
Texas District Court Judge Lee Yeakel has ordered South African national and CEO of Mirror Trading International Proprietary Limited (MTI), Cornelius Johannes Steynberg, to pay the sum for his role in perpetrating a fraudulent commodity pool scheme involving foreign currency transactions and Bitcoin.
The Largest Fraudulent Scheme Charged by the CFTC
From May 2018 to March 2021, the CFTC claimed that Steynberg accepted at least 29,421 BTC valued more than $1.7 billion at the time — but currently worth approximately $867 million — from 23,000 individuals in the U.S. and even more globally. The commission stated that it was the “highest civil monetary penalty ordered in any CFTC case” and also “the largest fraudulent scheme involving Bitcoin charged in any CFTC case.”
Steynberg Found Liable For Multiple Charges
According to the April 27 order, Steynberg was found liable for fraud in connection with retail foreign currency transactions, fraud by an associated person of a commodity pool operator (CPO), registration violations and failure to comply with CPO regulations. Additionally, Steynberg is permanently prohibited from engaging in any activity related to cryptocurrencies or commodities trading activities as part of his settlement agreement with the court.
Conclusion
This ruling serves as an example of how regulators are cracking down on cryptocurrency-related fraud schemes around the world and further cements their commitment to protecting investors from financial harm due to illegal activities like these.