An illicit cryptocurrency investment scheme has been shut down by Texas Securities Commissioner Travis J. Iles. The commissioner swung into emergency action to halt the operations of Mirror Trading International PTY LTD.
Mirror Trading, based in South Africa, operated a multilevel marketing get-rich-quick scheme. Iles accused Mirror Trading and four of its stateside and multilevel marketing agents of illegal solicitation from Texas investors.
Iles recently noted in a statement that the firm has lured investors into sending them Bitcoin (BTC). The cryptocurrency received from its victims was allegedly going to unidentified forex brokers towards automated trading using artificial intelligence.
The statement noted the firm’s recruitment of unregistered salespeople towards enticing investors to invest money by promising them a 10 percent return every month. The role of the salespersons was to promote the scheme to earn their commissions and the actual value of the commissions is based on the number of new investors and multilevel marketers they can bring on.
“These quick-to-profits schemes rely on a little bit of smoke and the shine of mirrors… Investors are often promised safe, lucrative returns; but promoters often fail to provide basic, required information to fully inform their prospective investors and satisfy their legal obligations.”
Part of the accusation against the firm is that it concealed material information from potential investors, including important information about Steynberg, its forex brokers, how it handles cryptocurrencies, the artificial intelligence for placing trades as well as the remarkable risks associated with the product.
“According to the order, Mirror Trading is boasting the accomplishments of its multilevel marketers, claiming it has now enrolled almost 76,000 members from more than 170 countries, including more than 22,500 since March 1, 2020.”
The people of Texas were misled by the firm by hiding their qualifications and financial experience, said Iles. He reminded investors to take caution when it comes to get-rich-quick internet schemes; that investigations into securities offerings should come first prior to investments.