CFTC Sues Company Over $1.7 Billion Bitcoin Fraud: 29K Bitcoin Misappropriated

The Commodity Futures Trading Commission (CFTC) has filed a lawsuit against Bitcoin pool operator Mirror Trading International (MTI) over an alleged $1.7 billion fraud. The CFTC’s complaint seeks full restitution on behalf of defrauded participants, as well as disgorgement, civil monetary penalties, permanent trading and a permanent injunction against future violations.

The Commodity Futures Trading Commission has sued Cornelius Johannes Steynberg for accumulating 29K Bitcoin worth $1.7 billion via a fraud. Steynberg created and operated, through MTI, a global foreign currency commodity pool that only accepted Bitcoin to purchase a participation in the pool, with a value tied to the purported profits of MTI's trading activities.

A Texas court has ordered the South African Mirror Trading firm chief to pay a record-breaking $3.4 billion for running a Bitcoin fraud scheme stemming from a case filed by the CFTC. The CFTC.

A lawsuit filed by the CFTC in June 2025 accused him of accepting a whopping 29,241 BTC ($1.7 billion at the time, $858.5 million today) from over 23,000 people, promising substantial returns on their investments. The CFTC alleges that these returns were never realized and that the Bitcoin was misappropriated.

This landmark case highlights the CFTC's commitment to protecting investors from fraudulent schemes in the digital asset space. The investigation is ongoing, and the CFTC is actively seeking to recover funds for the victims of this massive Bitcoin fraud.