BUSINESS NEWS - Mirror Trading International’s (MTI’s) promise of 10% monthly returns started getting the attention of crypto traders back in January. For seasoned traders, these claims failed the ‘smell test’, and they started talking about it online on IT news website MyBroadband.
Then two months ago Brandon Topham of the Financial Services Conduct Authority (FSCA) started looking into suspect claims being made on WhatsApp chat groups about the company’s incredible returns.
As Moneyweb reported last week, the FSCA is investigating MTI and has urged the company’s clients to request their funds back as soon as possible.
That’s pretty blunt advice from the normally circumspect FSCA.
In July, the Texas Securities and Exchange Commission (SEC) issued MTI with a cease and desist order on the basis that its claims were materially misleading. The Quebec Financial Market Authority has also listed MTI as a company that solicits investors illegally.
Happy customers …
The company has reportedly signed up more than 130,000 customers around the world, and its defenders – and there are plenty of them – argue that no one has lost any money with MTI.
The following interaction on MyBroadband is commonplace:
“Anybody who is unhappy can withdraw all their funds immediately and leave, nobody is holding you back! This continued attack is just a reflection of a justifiable Fear Of Missing Out (FOMO)? You are showing your jealousy!” says Bruce, an apparently happy MTI client.
Replies Stevie: “Do you really believe that what you seeing on your [MTI trading] dashboard is as a result of a real trade, that like the vast majority of them somehow managed to beat every statistical law and probability, and have a positive return?”
The words ‘Ponzi scheme’ come up frequently.
One critic was reportedly served a cease and resist letter by an attorney representing MTI. It’s getting ugly.
Astonishingly, MTI has reportedly pulled in close to R3 billion from investors, using multi-marketing teams who are rewarded with 10% commissions on new sign-ups. It also claims that the 10% commissions are paid out of profits rather than the investors’ capital.
“Empower Thyself financially with the spiritual currency of bitcoin and ensure your future by investing your bitcoin and earning 10% compound interest per month,” says the company’s Facebook page.