Mirror Buying and selling Worldwide (MTI), a South African bitcoin funding firm on the heart of a stop and desist order issued by the Texas State Securities Board (TSSB), is pushing again allegations that it’s operating a Ponzi scheme or a rip-off.
MTI CEO Johann Steynberg issued a press release assuaging MTI members that the group is in dialogue with the South Africa Monetary Companies Conduct Authority (FSCA).
Steynberg, who was issued a stop and desist order alongside three different people who reside in america, additionally says he’s in correspondence with TSSB on this matter.
In a report carried by World Crypto, a South African crypto web site, Steynberg insists in a letter that his group isn’t operating a Ponzi scheme as members have full management of their bitcoins always.
“One other vital level which differentiates MTI from Ponzi’s and scams is that members have full management over their funds (bitcoin) always.
Members can add or withdraw their funds (bitcoin) at any time, with no problems and no charges,” reads a part of Steynberg’s letter.
Steynberg claims that none of its 75,000 plus members worldwide “has ever complained” or has failed “to withdraw their BTC each time they’ve opted to.”
Nonetheless, Steynberg’s letter, which carefully resembles one being circulated to members, doesn’t instantly deal with TSSB’s core allegations.
As a substitute, the letter focuses on addressing the notion and characterization of MTI as a Ponzi scheme.
In keeping with the TSSB stop and desist order, MTI and its U.S.-based associates allegedly violated the state’s legal guidelines by working unregistered companies.
Moreover, TSSB alleges that Steynberg was perpetrating a world multilevel advertising fraud and recruiting salespeople who would not have securities buying and selling licenses. The regulator mentioned Texans are among the many victims.
Nonetheless, Steynberg says MTI will within the coming interval be inserting “nice emphasis on partaking with and dealing with any regulator with a transparent function always.”
The web passive revenue constructing business — during which MTI has been working for 15 months — has a infamous and demonstrated status for scams and Ponzi schemes, admits Steynberg.
In the meantime, Steynberg says his group desires to be “totally compliant as a professionally managed firm” that delivers to its stakeholders for the foreseeable future.
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