on the crypto
FX Choice, a forex and cryptocurrency trading company, is making new allegations that the bitcoin investment firm - here the quotation real-time - South African Mirror Trading International (MTI) is a multilevel marketing scam.
New allegations
FX Choice claims to have uncovered the story after studying the MTI case, which claims to have "118.027 members in 192 countries" and apparently sees "12.879,70 Bitcoin on the go every day."
Recent twists prompted FX Choice to take action a month before the Texas State Securities Board (TSSB) issued a termination order for MTI in July. In a statement, the Belize-registered investment platform says it has also uncovered evidence that MTI is presenting itself as an FX Choice broker.
Based on this new information, FX Choice says it has made the decision to "block MTI's account on June 10". The company subsequently requested "additional documents from MTI to confirm the source of their funds."
However, before MTI could provide the required documentation, FX Choice says "the concerns were subsequently confirmed by a statement from the Texas Securities Commission on July 7 and Canada's MFA a week later."
Meanwhile, FX Choice's statement follows a request for clarification for MTI from attendees at the Forex Peace Army forum, a scam reporting site. In the discussion thread, two members question the fact that MTI - as a broker for FX Choice - claims to have made “profits every day”.
Understanding the risks
In the published case report, FX Choice states: “We would like everyone involved in the MTI case to understand the risks. […] Forex is not the same as owning a bond where you receive a percentage.
The higher the risk reward, the higher the risk. We note that there is no single proof of the efficiency of MTI's operations. " In the same statement, the company explains that MTI opened an account under the name of the current CEO, Johann Steynberg in 2017.
Prior to May 2020, FX Choice claims that it saw no suspicious activity based on observing MTI's trading volume while deposits were still small. This changed, however, when the account was converted from personal to corporate status.
MTI has also started managing large deposits, and some have begun to be alarmed. FX Choice also disputes MTI's claim that it uses artificial intelligence software for trading. According to the statement, "MTI only executed a few trades, which were manually executed, large in size and suffered substantial losses."
MTI declares itself legitimate
Despite persistent allegations of scam, MTI insists that it runs a legitimate investment business. MTI's July reports state that none of its organization's 75.000 members around the world have ever complained or withdrawn their bitcoins. Steynberg adds that MTI is now placing more focus on the regulators involved.
