US Investigators Join Probe into Mirror Trading International

US investigators including the Federal Bureau of Investigation (FBI) are reportedly joining a probe into Mirror Trading International (MTI), South Africa's crypto firm to help liquidators of MTI recover the assets of US and local investors. 

In December 2020, MTI went into provisional liquidation after CEO Johan Steynberg skipped the country, taking with him access to a copious amount of Bitcoin that investors had entrusted to the company over the past few years. In January 2021, MTI claimed to have over 260,000 members around the world and 23,000 BTC now worth about $885 million. 

The FSCA warned investors in South Africa against investing in MTI early in August 2020 after ascertaining that the company had been operating without a financial service provider license. The regulator was also concerned that the firm was touting unusually high returns on investments to clients. 

MTI was placed in final liquidation in June 2021 with South Africa's  financial regulators calling it a Ponzi scheme.

The firm's liquidators "had meetings with international law enforcement agencies like the Federal Bureau of Investigation, after being approached by them," the grouping, made up of five trustees, said in an emailed statement. "The FBI is joining forces with the liquidators of Mirror Trading International in the interest of several U.S. and local investors."

The whereabouts of Johann Steynberg have been unknown since the trader's clients first reported they were unable to withdraw their funds. "Although there is a paper trail (airplane ticket) regarding his possible flight attempt to Brazil, no video or photo confirmation could be obtained that he did leave the country," the joint liquidators said.