In an email sent out to affiliate investors, Mirror Trading International has announced it’s dropping non-existent forex trading for non-existent crypto trading.

MTI’s announcement follows unsuccessful attempts to convince the TSSB and FSCA it uses trading revenue to pay affiliate returns.

In the email sent out, MTI advises

MTI was issued with a notice from the Texas State Securities Board (“TSSB”). We have every intention of effectively engaging the TSSB and we have connected with an SEC Defence attorney to assist MTI in this process.

As this process is in progress, we cannot further comment on the matter but assure our MTI members that this is a priority and we will do whatever it takes to resolve this matter.

The deadline for MTI to respond to the TSSB’s securities fraud cease and desist was August 8th.

To date there has been no indication MTI responded to the notice. A TSSB order permanently banning MTI in Texas is expected sometime over the next few months.

Having said this, however, we confirm that after discussions with our SEC Defence attorney, as well as further perusal of the TSSB notice, the grounds upon which notice was submitted seem to be of no merit and pertain to members who were not even based in Texas.

As such, and although MTI deems it important to be compliant in every way possible, MTI intends on dealing with the TSSB in the appropriate manner.

Rather than register with the TSSB and provide audited financial reports confirming it isn’t a Ponzi scheme, MTI instead has opted to dismiss enforcement of securities law as “lacking merit”.

What’s significant about this position is that securities law in Texas is near-identical to federal securities law. Meaning if MTI is permanently banned in Texas, the scheme is as good as dead across the US.

In South Africa, yesterday saw the national FSCA regulator issue its own securities fraud warning.

Again, rather than register with the FSCA and provide legally required audited financial reports, MTI appears to have tried to weasel around the law.

Two physical meetings have been attended to by MTI at the FSCA offices in South Africa.

All trading proof, balances and processes have been given to the FSCA and upon their request, Johann Steynberg went to their offices and showed them LIVE trading taking place and LIVE trading pool balances.

“Live trading” is social media fodder and not a substitute for audited financial reports. Ditto “trading proof, balances and processes”.

Unless MTI registers with the FSCA and produces audited financial reports, whatever “proof” it comes up with is meaningless.

In light of hitting this regulatory brick wall, MTI has spat the dummy.

The future of MTI being regulated by the FSCA was discussed, however, after considerable time spent with the FSCA it has become clear to MTI that they will not guide MTI as to what needs to be done in order to be regulated and FSCA approved.

The process in order to regularise with the FSCA was done so that our operations would not be interrupted and was by no means an admission of any wrongdoing.

The FSCA will be releasing a statement warning member of the public about MTI.

This statement will be published despite the fact that they have seen LIVE trades, confirmed Member Pool Balances and despite the responsibility MTI expressed it feels towards helping members in trying economic times.

At present MTI is operating illegally in South Africa, the country it is based out of. Whether the FSCA takes further action against the Ponzi scheme remains to be seen.

MTI’s forex trading ruse publicly came undone earlier this month, after its publicized broker revealed the company wasn’t generating trading revenue.

To that end MTI responded by claiming it had engaged new brokers, the names of which it of course wasn’t going to reveal.

That ruse, which bought the company a few weeks with potentially disgruntled affiliates, has now been ditched.

As a result of the current situation with the FSCA, as mentioned above, MTI has changed from FOREX trading to Crypto’s and we are thoroughly excited about this change.

It should be noted that the FSCA (or TSSB for that matter) don’t have a problem with forex trading. Provided of course a company registers itself and provides legally required periodic financial reports.

For some reason MTI seem to think switching from imaginary forex trading to imaginary crypto trading, will result in exemption from securities law.

We have been testing a product in the crypto space for a number of months and the performance of the BOT has been exciting.

MTI Management, under the guidance of Johann Steynberg, has decided to move MTI into a pure crypto space. This change will be affected on Friday 21 August 2020.

It won’t. Committing securities fraud with non-existent forex trading is just as illegal as committing securities fraud with non-existent crypto trading.

What the switch does do is allow MTI to drop regular banking channels, which are no doubt under pressure following the regulatory crackdown.

Pending further action from the TSSB and/or FSCA, stay tuned…