The final decision has been made in the crypto money lawsuits against the African Gold Acquisition Corporation and Mirror Trading executives. A US court sentenced executives accused of fraud to heavy fines and imprisonment.
US court makes final decision in 2 cryptocurrency cases
In the first lawsuit, the CEO of Bitcoin pool operator Mirror Trading International (MTI) was ordered to pay $3.4 billion in damages to Cornelius Johannes Steynberg. The MTI founder was accused of fraud by the CFTC in June 2022 for running an unlicensed commodity pool scheme.
The CFTC claimed that the “controller” at MTI accepted 29,421 BTC (worth more than $1.7 billion at the time of acceptance) from 23,000 Americans to run an unlicensed commodity pool scheme.
ENFORCEMENT NEWS: CFTC Charges South African Pool Operator and CEO with $1.7 Billion Fraud Involving Bitcoin. https://t.co/cvNlksPznw
— CFTC (@CFTC) June 30, 2022
According to the CFTC announcement, MTI is being liquidated in South Africa. Steynberg is a fugitive from South African law enforcement who has been detained in Brazil since December 2021. The ruling finds MTI “responsible for fraud in connection with retail currency (forex) transactions, fraud by an associated person of a commodity pool operator (CPO), breaches of registration and non-compliance with CPO regulations.”
As a result of the lawsuit, Cornelius Johannes Steynberg, CEO of Mirror Trading International, was fined $3.4 billion.
African Gold Acquisition Corporation executive sentenced to prison
Former AGAC CFO faces 3 years in prison for stealing $5 million to trade crypto and ‘meme stocks’. An April 27 press release from the US Department of Justice said Cooper Morgenthau, former chief financial officer of African Gold Acquisition Corporation (AGAC), has embezzled more than $5 million from three different SPACs.
Former chief financial officer of two SPACs sentenced to 36 months in prison for fraud schemehttps://t.co/ZOvi2ksEi1
— US Attorney SDNY (@SDNYnews) April 27, 2023
According to the complaint from the SEC, Morgenthau transferred approximately $1.2 million in funds from African Gold to his personal accounts. He then used this money to trade cryptocurrencies and stocks. In doing so, he lost almost all funds.
Following the losses, he provided forged documents to accountants and an auditor before the company’s financial records were disclosed to the SEC.
Cooper Morgenthau pleaded guilty
Morgenthau has raised another $4.7 million from private investors in a SPAC separate from African Gold. However, he used this money to cover his losses in African Gold. African Gold detected withdrawals and fired Morgenthau from the company.
Morgenthau pleaded guilty as a swindler living in Florida. Now, he has been sentenced to 3 years in prison. It will also have to return $5.1 million. US Attorney General Damian Williams said this sentence sends a strong message against SPAC fraud.
As a result, the cases once again demonstrate the importance of financial regulations and control mechanisms. It also reminds us that high-risk investments must carefully balance with return expectations. cryptocoin.comYou can take a look at the latest developments from the ongoing Tron case, which we have reported as.
