The company’s director, Johannes Steinberg, is jointly and severally liable. The punishment was imposed for, literally, deceiving investors and managing a fraudulent commodity pool.
In June 2022, the CIF Commodity Futures Trading Commission (CFTC) filed a civil lawsuit in the Western District of Texas, accusing Steinberg and MTI of registration violations and digital asset fraud.
In its appeal to the court, the regulator stated that MTI promised victims income from participation in an unregistered commodity pool, allegedly intended for high-margin over-the-counter trading of bitcoins. The CFTC’s complaint states that MTI and its CEO misled investors and were able to fraudulently obtain 29,421 BTC in assets.
As stated in court documents, the total amount of punitive damages imposed on MTI and its CEO is $3.4 billion, of which $1.7 billion was recovered from Steinberg as a civil penalty.
Previously, Mirror Trading CEO Johann Steinberg was arrested in Brazil, where he was fined for illegally entering the country and using false identification documents.
Source: Bits
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