Texas Regulators Identify MLM Scheme for South African Crypt Coins

The Texas State Securities Board has closed the activities of a multilevel marketing scheme in South Africa involving investments in cryptosystems in the state.

In a recent statement, Securities Commissioner Travis J. Iles said the company had misled investors into sending them Bitcoin (BTC), which allegedly would be transferred to unidentified currency brokers for automated trading using artificial intelligence.

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According to the statement, Mirror Trading International PTY LTD recruited unregistered sellers to attract investors to invest money with a 10% return per month. The sellers were supposed to promote the scheme and bring in new investors and multi-level marketers to earn their commissions.

In addition to promoting the scheme to get rich quick through an Bitcoin Method program, regulators also accused the company and its operator Cornelius Johannes „Johan“ Steynberg of misrepresenting or concealing important information about the owner’s background, the forex broker, the handling of his cryptomoney and the artificial intelligence used for trading.

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According to the reports, Mirror Trading exaggerated their achievements and claimed that they had registered almost 76,000 members from 170 countries, of which 22,500 had registered in the last four months.

The tip of the iceberg
He named ForexAndBitcoin.com, Michael Cullison, Steve Herceg and Brian Knott as the four multi-level traders involved in this scheme. He said their actions were illegal under laws requiring registration of securities and their vendors.

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Agency compliance director Joe Rotunda said this could be just the tip of the iceberg:

„Fraudulent multi-level marketing schemes to get rich quickly gain momentum and spread like wildfire over the Internet. We are taking this action to quickly stop the illegal scheme before it irreparably damages Texans.