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Home Bitcoin - Top 10 South African Researchers Accuse Crypto Firm MTI of Being a Ponzi Scheme

South African Researchers Accuse Crypto Firm MTI of Being a Ponzi Scheme

Mirror Trading International (MTI) – a cryptocurrency investment company – has been accused by Anonymous ZA, a South African research group, of being a fraudulent firm and potentially looking to scam people out of their digital funds.

MTI: We Will Be Pursuing Legal Action

MTI is now fighting back and claiming that the company’s alleged findings – which have all been compiled into a recent report – are not only false, but are designed specifically to slander the company and are not backed up by any proof or facts of any kind. MTI is not taking kindly to the accusations and says it is planning to file a lawsuit against Anonymous ZA.

The report suggests that the enterprise is hiding behind a crypto façade and looking to pull off a multi-level scam while allegedly offering people a chance to invest in bitcoin and assorted digital currencies. In addition, MTI was recently investigated by the Financial Sector Conduct Authority (FSCA) in South Africa, which believed that the firm should hold a financial services provider license.

In addition, the FSCA claimed that MTI’s investment claims went against reality, which rose several red flags with the investigative body. It has since advised any traders working with MTI to withdraw all their funds and cease their relationships with the company without delay.

MTI is accusing Anonymous ZA from obtaining the information it has about the company through a data breach, though the latter is denying it ever hacked MTI’s network servers or databases. Cheri Marks, who works as a spokesperson for MTI, commented in a recent interview that her company is looking into who was responsible for the breach and that they had committed an offense punishable by law.

She explained:

Yes, we had a security breach of our administration portal. Yes, it was a criminal act. Yes, we will be pressing charges and everyone publishing the personal information illegally obtained we will refer to our legal counsel.

Too Many Strange Occurrences

Anonymous ZA says that it didn’t have to obtain the information through illegal means considering how easy it was to perform “scraping techniques” on the website of MTI. It is estimated that the owners and creators of the firm doled out roughly $18 million in bitcoin rewards to themselves. The report issued by the investigating firm states:

Deposits made by founder members are not easily traceable, yet they (founders) seemingly get better ROI than regular members… Unless MTI can display or prove control of a bitcoin wallet, or another storage facility to the value of 17K BTC, we will stand by our view that MTI is a Ponzi scheme.

In response, Marks challenged the anonymous group to find any investors currently working with MTI that were unhappy with the company’s operations. She has also stated that executives have opened the company’s live trading account for the FSCA to view and monitor.

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