Although cryptos are a medium of exchange and money system exactly like the fiat currencies. Many online gates are promoting them as a rapid investment method as MTI. However, contrary to this opinion, it seems that virtual currencies investing is a fertile area for fraud cases!
Johat Steinberg, the CEO of MTI Crypto, stole more than $589 million from cryptos investors'. This was the biggest fraud case in the crypto industry in 2020!
According to the report issued by Chaina Lysis, this company stole the money of more than 470,000 users around the world. The report studied the traffic to determine the countries with the largest number of victims; It turned out that three-quarters of the IP addresses were from South Africa. While the last quarter was from the UK, Canada, and Mexico.
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How MTI Crypto Made This Scam?
MTI Crypto applied the famous Ponzi scheme, which is the basis for all large scale scams!
Under this scheme, the investment company promises investors that they will get great returns for their money in a very short period. Therefore, they put everything they have in the company to get high returns in the long run. On the other side, the company gives the profits of old investors from the money of the new investors! The process remains that way until the company suddenly disappears or goes bankrupt; In both cases, the only victim is the investor!
MTI company was created to provide crypto investment services and provide large profits to investors. In the beginning, the company announced that it would offer a daily return of 0.5%. Meaning, 15% per month and 180% per year. While the most popular platforms like Blockfi only offer 4.5% per annum!
Therefore, a lot of miners have transferred their money in this company to get the amazing profits that it offers them. The famous proverb applies to these investors: “The hustler pays his dinner bill with greedy’s money”. However, these investors recognized that this company is fraudulent and quickly submitted requests to withdraw their money. At first, the company denied these claims. But the increasing demands of investors to withdraw their money, they found no way but to escape!
When investors in South Africa and other countries knew that there was no alternative but to resort to the authorities, they turned to them.
Already the Financial Sector Conduct Authority (FSCA) in South Africa has arrested some suspects. However, Johan Steinberg, CEO of MTI has escaped with investors’ money amounting to 589 million dollars!
How MTI Launder This Money?
According to the Chaina Lysis report. Johann Steinberg transferred a part of this money ($39 million) to an unknown online casino. Of course, this made tracking down the victims’ funds very difficult; Since thousands of online casinos do not hold any legal license!
Use of Cryptos at Online Casinos Is on the Rise
Many experts believe that more and more online casinos will support crypto to attract more players from the younger players.
In a survey conducted by Tokenist over the past year, 44% of respondents reported that they plan to use cryptos. In addition, all payment platforms without exception are going to support digital currencies, including PayPal!