Mirror Trading International, a South African Cryptocurrency trading company, is now under investigation the national financial regulator, as it came under the radar upon suspected claims that were “far-fetched and unrealistic.”
The South African Financial Sector Conduct Authority (FSCA), concluded that the firm is not licensed to conduct the type of business it claims to be involved in, which involves the use of automated cryptocurrency trading bots to “generate consistent profits”. The regulator has strongly advised all it’s clients to withdraw their funds from the company at the earliest possible.
“While investigating, we found out that MTI was investing clients’ funds into a pooled forex trading platform, to perform high frequency trading automated through trading bots. These operations require an organization to have a license and regulatory oversight, which they didn’t apply for,” the regulator commented.
Though further details are yet to be made available, the official MTI website claims a user base of more than 100,00 people globally. It also has a referral scheme rewarding members who bring in more members. Tactics such as these are typical of pyramid schemes and scams like PlusToken. Authorities globally have geared up and are working to regulate bitcoin and cryptocurrencies to protect their citizens from fraud and scams.