Data Leaks Indicates Bitcoin Investment Company A Scam: Founders Deny Claims

A South African group calling themselves “Anonymous ZA” released recent information that apparently supports long-standing allegations that Mirror Trading International (MTI), a suspected Bitcoin investment firm, is running a multi-layered marketing scam. The new information, allegedly obtained after a breach of MTI’s internal systems, shows that the investment firm is “completely structured around a tree / pyramid scheme”.

According to a report, the leaked data suggests that MTI’s practice is to distinguish between “normal members and founding members”.

When evaluating the data, Anonymous ZA said it would appear that if “the deposits made by the founding members are not easily traceable, they (the founders) apparently get a better ROI than the regular members.” The data also shows that “Founding Members are also at the top of the pyramid and earn more money from their binary bonuses than ROI or any other source.”

Perhaps in revelations that may lend credence to the allegations that are often made against MTI, the report quoting Anonymous ZA says:

“The database further shows payments of $ 86.25 million (8,171.6 BTC) to regular members, including $ 21.4 million (2,036.5 BTC) as bonuses for recommending new members. Payments to founding members amount to $ 18.45 million (1,744 BTC). “

The report confirms that members are paid to recruit new members, but does not give the number of founding members.

In early July, the Texas State Securities Board (TSSB) accused MTI of also carrying out a multi-layered marketing scam because it was operating in the state of Texas without a license. The TSSB subsequently issued a cease and desist order against MTI and some of its employees. South Africa’s regulator, the Financial Sector Conduct Authority (FSCA), subsequently issued its own public statement repeating the TSSB’s allegations. However, the FSCA statement goes further by asking investors to withdraw their funds from MTI.

Anonymous ZA closes his statement in which he says “Unless MTI can show or prove control of a Bitcoin wallet or other storage facility worth 17k BTC, he will maintain his opinion that: MTI is a Ponzi scheme “.

Meanwhile, following the latest revelations, the MTI leadership moved to confirm the violation with a fierce response. Cheri Marks, one of the founding members and spokesperson of MTI, suggests that the perpetrators of the offense that took place on September 18 committed a criminal offense, then Marks threatens to take legal action against the perpetrators and those who publish articles based on information obtained illegally:

Yes, we have had a security breach in our administration portal. Yes, it was a criminal act. Yes, we will file a complaint and anyone who posts illegally obtained personal information will be referred to our legal counsel.

Marks then attacks hypotheses that MTI had ceased operations, claiming that “more than 34,000 withdrawals or 5,933 bitcoins were made in August without even a setback.”

Throughout the spiel, Marks challenges the media to name a single disgruntled investor among the “170,000 who grow their bitcoins with MTI.”

Still, Marks fails to adequately address concerns that founders might get larger payouts than the rest of investors. Instead, Marks chooses to brag about his founding status by saying:

“The fact that MTI has founding members is nothing new. Yes, there is an additional share of the profits for them and it does not affect the company or the members in any way, nor is it a state secret ”.

During the seventeen-minute video, Marks complains about media bias and “intent to defame, not provide a decent and informed view of MTI, its founders, shareholders or members.”

Marks also briefly discusses MTI’s interactions with FSCA, but does not provide a satisfactory answer as to why the regulator has asked investors to withdraw funds even after “the CEO of MTI opened our trading account in direct and Balance BTC for the FSCA see “.

Surprisingly, right after meeting with the FSCA, the investment company made the decision to invest in bitcoin only. Critics argue that the measure was intended to remove MTI from the tutelage of regulators. Meanwhile, reports say the FSCA has learned of the data breach and is investigating.