US Commodities Regulator Charges South African Company With Record $1.7 Billion Bitcoin Fraud

US Commodities Regulator Charges South African Company With Record $1.7 Billion Bitcoin Fraud
Signage outside of the Commodity Futures Trading Commission (CFTC) in Washington on Aug. 30, 2020. Andrew Kelly/Reuters
Reuters
Updated:

WASHINGTON—The U.S. commodities regulator announced on Thursday it had filed civil charges against a South African man and his company for operating a fradulent commodity pool worth over $1.7 billion in bitcoin.

The Commodity Futures Trading Commission (CFTC) said the fraud scheme, which saw the firm solicit bitcoin online from thousands of people to purportedly operate a commodity pool, was the largest it had ever pursued involving the cryptocurrency. The CFTC filed charges against Mirror Trading International Proprietary Limited and its CEO, Cornelius Johannes Steynberg.