News

Breaking: US CFTC Settles Largest Bitcoin Forex Fraud Case in History

The United States Commodity Futures Trading Commission (CFTC) has settled the biggest Bitcoin Forex fraud case in history
Published by
Breaking: US CFTC Settles Largest Bitcoin Forex Fraud Case in History

In a recent development, the United States Commodity Futures Trading Commission (CFTC) has announced that it has settled what can be described as the largest Bitcoin (BTC) forex fraud case in history.

Advertisement

Consent Order Issued Against MTI

On September 6, 2023, Judge David A. Ezra of the U.S. District Court for the Western District of Texas entered a consent order finding Mirror Trading International Proprietary Limited (MTI) liable for a litany of charges. 

The charges include fraud in connection with retail Foreign currency (Forex) transactions, fraud by a Commodity Pool Operator (CPO), registration violations, and failure to comply with CPO regulations. The roots of this case can be traced back to a CFTC complaint filed on June 30, 2022, alleging MTI’s involvement in fraudulent activities. 

One of the most noteworthy aspects of the consent order is the requirement for MTI to pay more than a staggering $1.7 billion in restitution to the defrauded victims. Additionally, the consent order also imposes permanent trading bans on MTI in any CFTC-regulated markets. 

Furthermore, the order includes a registration ban against MTI, which effectively prevents the company from participating in any future CPO activities.

Remarkably, this civil monetary penalty is the highest ever ordered in any CFTC case, underscoring the severity of the wrongdoing. This verdict underscores the CFTC’s commitment to ensuring that perpetrators of financial fraud face the consequences of their actions. 

Advertisement

Background of the CFTC Case Against MTI

According to the order, Cornelius Johannes Steynberg, both individually and as the controlling figure behind MTI, orchestrated a far-reaching international multilevel marketing scheme. The primary aim of this scheme was to solicit Bitcoin from unsuspecting individuals, enticing them to participate in an unregistered commodity pool operated by MTI. 

This unregistered commodity pool claimed to engage in off-exchange, retail forex trading using what the defendants falsely presented as proprietary trading software or “bot.” 

During the nearly three-year period, Steynberg and agent of MTI, managed to solicit an astounding 29,421 Bitcoin from participants. At the end of this timeframe, the total value of these Bitcoin holdings exceeded a staggering $1,733,838,372. 

The CFTC’s relentless pursuit of justice in this case was aimed at addressing the grievances of over 23,000 individuals from the U.S. who were victimized by MTI.

Advertisement

Share
Godfrey Benjamin

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on X, Linkedin

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • News

Breaking: Trump To Meet China’s President On October 30, Bitcoin Bounces

Bitcoin surged above $111,000 after confirmation that President Donald Trump and Chinese President Xi Jinping…

October 23, 2025
  • News

Breaking: Trump Pardons Binance’s Changpeng “CZ” Zhao, BNB Spikes

U.S. President Donald Trump has reportedly pardoned Binance founder Changpeng "CZ" Zhao for his conviction…

October 23, 2025
  • News

Peter Schiff Challenges Binance Founder CZ to Debate as Bitcoin Vs. Gold Rivalry Heats Up

Bitcoin critic and renowned economist Peter Schiff has challenged Binance co-founder Changpeng "CZ" Zhao to…

October 23, 2025
  • News

Robinhood Lists HYPE As Hyperliquid Flips CZ Backed Aster In Perp DEX Volume

Crypto exchange Robinhood has listed Hyperliquid's native token HYPE for its U.S. clients. This comes…

October 23, 2025
  • News

Expert Warns More Crypto Bloodbath Ahead of CPI Data Tomorrow

The U.S. Bureau of Labor Statistics (BLS) will release the Consumer Price Index (CPI) data…

October 23, 2025
  • Bitcoin News
  • News

US President Promises Deal With China on Everything As ‘Trump Insider’ Begins To Close Bitcoin Shorts- Is A BTC Recovery Ahead?

The “Trump insider whale” has begun closing its Bitcoin short positions just as the U.S.…

October 23, 2025