US regulator embroiled in ‘largest Bitcoin fraud case ever’

Last Updated: 1 July 2022

A new day, a new major pyramid scheme to be tackled. This time it is a case in America. The case involves a total of 29,421 bitcoin.

The Commodity Futures Trading Commission (CFTC) is suing Cornelius Johannes Steynberg and his company, Mirror Trading International (MTI), in the ‘largest ever bitcoin fraud case.’

The CFTC is the US regulator for derivatives markets. They are also involved in the enforcement of bitcoin and related products.

This is the largest case that this particular regulator is taking on. Of course, there are other big cases involving many billions of dollars.


The indictment accused Syenberg of a well-known “business model”: multi-level marketing. The daily price of the stolen bitcoin was about $1.7 billion in total.

Through his company, Syenberg allegedly defrauded people for almost three years (from May 2018 to March 2021).

Participants were promised golden mountains. But in practice, it mostly became a lot of tears. “The few trades the accused did were not profitable, and they, essentially, embezzled all of at least 29,421 Bitcoin,” CFTC Commissioner Kristin Johnson said in a press release. “Scammers often take full advantage of new technology, global connectivity, and the perceived lack of a police officer.”

The CFTC is demanding fines, and customers must also get their money back. The latter will be tricky. In the world of bitcoin, money is often irretrievable.

  • Gabriele Spapperi

    Gabriele Spapperi is a veteran cryptocurrency investor and blockchain technology specialist. He became fascinated with Bitcoin and distributed ledgers while studying computer science at MIT in 2011.

    Since 2013, Gabriele has actively traded major cryptocurrencies and identified early-stage projects to invest in. He contributes articles to leading fintech publications sharing his insights on blockchain technology, crypto markets, and trading strategies.

    With over a decade of experience in the crypto space, Gabriele provides reliable insights and analysis on the latest developments in digital assets and blockchain platforms. When he's not analyzing crypto markets, Gabriele enjoys travel, golf, and fine wine. He currently resides in Austin, Texas.

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