The CFTC has secured a $1.7 billion consent judgment against Mirror Trading International.

The judgment follows settlement negotiations with South African liquidators, and a Joint Motion to approve the then proposed consent judgment on September 5th.

The court signed off on the judgment on September 6th.

The consent judgment establishes that Mirror Trading International violated US law, specifically the Code of Federal Regulations and United States Code.

During the Relevant Period, MTI acted in a capacity as a CPO by soliciting, accepting, and receiving funds, securities, or property, in this case Bitcoin, from the public while engaged in a business that is of the nature of an investment trust, syndicate, or similar form of enterprise, for the purpose of, among other things, trading in forex, without being registered with the CFTC as a CPO.

A permanent injunction is part of the order, prohibiting further violations by Mirror Trading International and CEO Cornelius Johannes Steynberg (right).

On the money side of things;

MTI shall pay restitution in the amount of one billion, seven hundred thirty-three million, eight hundred thirty-eight thousand, three hundred seventy-two dollars ($1,733,838,372.00).

Unfortunately for MTI’s investors, this doesn’t mean restitution is any closer.

South African liquidators filed Mirror Trading International bankruptcy proceedings in Florida back in February.

As a result;

The CFTC shall not take any action to collect payment for the Restitution Obligation as long as the automatic stay provision is in place in the U.S. Bankruptcy Proceeding, In re Mirror Trading Int’l (PTY) Ltd.

In an
accompanying press release
, the CFTC notes the $1.7 billion MTI order is “the highest civil monetary penalty ordered in any CFTC case.”

The September 6th order brings a close to formal CFTC proceedings against MTI. This includes Daily Exposed’s coverage of the case.

The latest out of South Africa on ongoing liquidation proceedings was a
denial order
, with respect to an earlier “MTI is illegal” order.

There haven’t been any further updates since late August.

Johannes Steynberg was
arrested in Brazil
in late 2021. His extradition to South Africa hinges on the outcome of
ongoing identity fraud proceedings
.

The CFTC secured a
$3.4 billion dollar judgment against Steynberg
back in March.

🤖 Quick Answer

What enforcement action did the CFTC take against Mirror Trading International?
The CFTC secured a $1.7 billion consent judgment against Mirror Trading International following settlement negotiations with South African liquidators. The court approved the judgment on September 6th, establishing that MTI violated US federal regulations by operating as a commodity pool operator without proper authorization.

What violations did Mirror Trading International commit?
MTI violated the Code of Federal Regulations and United States Code by soliciting, accepting, and receiving funds, securities, and cryptocurrency from the public while operating as an unlicensed commodity pool operator engaged in investment trading activities without proper compliance.

When was the consent judgment approved?
The Joint Motion to approve the consent judgment was filed on September 5th, and the court officially signed off on the $1.7 billion judgment on September 6th, following settlement discussions between the CFTC and South African liquidators

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